Lithium developer European Lithium has announced plans to sell its noncore assets in Western Australia.

The company has signed a binding term sheet for its full interest in the E47/4111 tenement in Western Australia with Moosh Moosh, and will receive A$1-million in cash or equivalent shares in an ASX-listed company, as well as a 1% net smelter royalty on minerals extracted from the tenement.

The sale will likely be completed by the end of September this year.

“The sale of our noncore Australian tenement aligns with our strategy to focus our attention on securing battery commodities for Europe’s green energy transition,” said European Lithium chairperson Tony Sage.

The company is currently developing the Wolfsberg lithium project, in Austria, which is expected to require a capital investment of $873-million to support an 8 800 t/y lithium hydroxide monohydrate production rate over a mine life of nearly 15 years, with operating costs estimated at $19 409/t before by-product credits.