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European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to announce it has executed a binding Heads of Agreement with 2743718 Ontario Inc. (Ontario), a subsidiary of Richmond Minerals Inc. (TSX-V: RMD) (Richmond)(HOA), pursuant to which European Lithium has agreed to acquire, and Ontario has agreed to sell, 100% of the rights, title and interest in the Bretstein-Lachtal Project, Klementkogel Project and the Wildbachgraben Project (together Austrian Lithium Projects)(Acquisition).
HIGHLIGHTS
- The Bretstein-Lachtal, Klementkogel and Wildbachgraben projects (Austrian Lithium Projects) are covered by exploration licences that total 114.6 km2, targeting lithium with known occurrences in the Styria mining district of Austria;
- Underexplored area within a region that is adjacent to the Company’s Wolfsberg Lithium Project;
- Reconnaissance campaign has confirmed the presence of multiple pegmatite bodies, Rock chip samples by Richmond Minerals Inc. show grades up to 2.67 % Li2O hosted by Spodumene Pegmatites1;
- Acquisition of 100% of the rights, title and interest in the Austrian Lithium Projects;Subject to satisfactory due diligence within 3 months;
- Consideration is $250,000 cash, 2 million shares and 2 million options, with settlement expected to be 7 July 2023
Tony Sage, Chairman, commented: “The acquisition is an excellent opportunity to secure ground in a largely unexplored area highly prospective for lithium and builds on our portfolio of European projects in a known jurisdiction where we have exploration and development experience. The Company is in the final stages of completing a proposed merger transaction that will see the advanced Wolfsberg Lithium Project develop under the control of Critical Metals Corp. that intends to list on NASDAQ. Once complete, together with our Ukrainian assets, the Company will refocus on building and developing critical metal projects in Europe.”
The Austrian Lithium Projects consist of 245 exploration licenses covering a total area of 114.6 km². The licenses cover ground that is considered prospective for lithium occurrences in the Styria mining district of Austria.
Austrian Lithium Projects
The licenses in the Austrian Lithium Projects include the Wildbachgraben Project, comprising 32 licenses covering 14.9 km²; the Klementkogel Project comprising 22 licenses covering 10.5 km²; and the Bretstein- Lachtal Project comprising 191 licenses covering 89.2 km².
The Austrian Lithium Projects are hosted by comparable, prospective geological units as EUR’s Wolfsberg Lithium Project and show a similar vein type mineralisation with spodumene as the main lithium bearing mineral.
Figure 1 – Austrian Lithium Projects location.
The most advanced and prospective, Bretstein-Lachtal Project, located approximately 80km from the Wolfsberg Lithium Project, shows historical surface mapping of spodumene pegmatite occurrences. Spodumene pegmatite outcrops at Bretstein-Lachtal Project were reported with Li2O grades up to 2.93% and spodumene crystal sizes as large as 10 cm by Mali (2004).
A reconnaissance campaign completed by Richmond Minerals in the summer of 2022 revealed multiple pegmatite bodies in the Bretstein-Lachtal Project area and confirms the descriptions of Mali (2004). Spodumene pegmatite veins were observed up to a meter thickness with spodumene crystals up to 10 cm size. Geochemical results from grab rock chip samples indicate prospective spodumene pegmatites with Li2O grades ranging from 0.51 to 2.67% (Table 1 and Figure 2).
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