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European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to provide an update of progress on the proposed merger transaction, NASDAQ Listing and additional equity investment. EUR advises that Sizzle Acquisition Corp. (Sizzle) and CRML have secured an additional investment facility from an investment vehicle managed by a New York based financial group, which is expected to provide CRML with US$10 million in capital at closing. Proceeds from the facility are expected to be used to fund the development of the Wolfsberg Lithium Project in Austria (Wolfsberg or Wolfsberg Project).
HIGHLIGHTS
- Critical Metals Corp. (Critical Metals or CRML) secures equity investment facility for additional capital at closing;
- EUR expects CRML to secure more capital in the following weeks, and leading up to shareholder approval of the transaction;
- EUR expects CRML to file an updated Form F-4 registration statement with the SEC, and keenly awaits the SEC’s response and/or SEC Effectiveness.
Tony Sage, Chairman, commented, “European Lithium and Critical Metals Corp. are excited to welcome another new investor, and more committed equity capital to fund the Critical Metals transaction as well as the Wolfsberg Project.”
Critical Metals Corp.
On 26 October 2022, European Lithium announced that it has entered into a business combination agreement with Sizzle Acquisition Corp. (NASDAQ: SZZL), a publicly traded special purpose acquisition company, pursuant to which EUR will combine its wholly owned Wolfsberg Project with Sizzle via a newly- formed, lithium exploration and development company named “Critical Metals Corp.” which is expected to be listed on NASDAQ under the symbol “ CRML” (Transaction).
European Lithium shareholders approved the Transaction on 20 January 2023. Once the F-4 is declared effective by the SEC, the Sizzle Board will convene a shareholding meeting for purposes of, among other things, approving the Transaction.
The Transaction is progressing through the approval process and remains subject to SEC and Sizzle shareholder approval as outlined above.
Upon the closing of the Transaction, EUR will be issued US$750 million worth of ordinary shares in CRML.
Achievements to Date
The Company can report substantial progress has been made in the development plan for the Wolfsberg Project with the achievement of several key milestones highlighted by:
- Mining permit secured - spodumene mined from the project successfully demonstrated its capability to supply high-purity lithium (99.6% lithium carbonate equivalent) at pilot plant.
- Mineral Resource Estimate1 - 12.88 Mt of Measured, Indicated and Inferred classified Resources at 1.00% Li2O grade in Zone 1 only:
- Economic viability - Definitive Feasibility Study (DFS)2 that demonstrates a post-tax NPV of US$ 1.5 billion @ WACC13 6%, mined over approximately 15 years.
- Binding offtake agreement with top-tier auto manufacturer secured - direct long term lithium hydroxide supply agreement with BMW4.
- Binding agreement to build hydroxide plant - partnership with Obeikan to build lithium hydroxide processing plant in Saudi Arabia with significant cost savings expected.
- Advanced project with drilling upside – established mine and current resource estimate based only on Zone 1 with drilling undertaken showing prospectivity in Zone 2.
- CRML has entered into a share subscription facility for up to US$125.0M with GEM Global Yield LLC SCS (GEM), a Luxembourg based private alternative investment group. Proceeds from the facility are expected to be used to fund the development of the Wolfsberg Project5.
For full details of the DFS, please refer to EUR announcement dated 8 March 2023, “Wolfsberg Lithium Project Definitive Feasibility Study Results”. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
Development Plan
The Company has identified several key catalysts in its project development plan for Wolfsberg that include: finalising funding for Wolfsberg infrastructure requirements, commencing construction, and undertaking resource extension drilling in Zone 2 to increase mine life.
The Company has previously advised that it will shortly commence the initial work program at its newly acquired Austrian Lithium Projects (refer EUR announcement dated 21 June 2023), consisting of 245 exploration licenses covering a total area of 114.6 km² located approximately 70km north of the Company’s Wolfsberg Project. The licenses cover ground that is considered prospective for lithium occurrences and initial surface sampling showing 3.98% Li2O.
This article includes content from European Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EUR:AU
HMW Project Achieves 1,000t LCE Contained Inventory as Lithium Chloride Production Journey on Track
HMW Project Update
- Pond 1 and 2 evaporation continues; approx 1,000t LCE contained inventory
- Pond 3 earthworks almost complete, liner installation at 60% and filling of pond 3 commenced; Pond 4 earthworks have commenced
- Overall project completion now at 33%, with pond construction 45% complete; project execution is advancing as planned
- Aligning with the physical progress of the project, capital expenditure also sits at 33% of the Phase 1 budget
- Key processing parameters; average brine flow rate, average Li grade from wells and evaporation rates in line with the Feasibility Study. The project remains on track to commence production in H1 2025
- Opportunities to reduce the Capex and Opex for HMW Phase 1 identified; engineering and procurement teams working to quantify these opportunities within the next two months
- Low all-in sustaining costs; HMW is expected to be in the 1st quartile of lithium industry’s cost curve with an initial reserve estimate of 40 years
- Phase 2 Operating cost to LiCl concentrate of $US3,510/t LCE equates to a low Li2O equivalent operating cost of SC6 (Spodumene Concentrate) $US310/t-$US350/t; solid production margins at current spot prices
- Following the recent agreement signed with the Catamarca government, offtake and funding discussions are advancing; Glencore due diligence process continues.
Overall completion of the HMW project now sits at 33% with the ponds system already at 45% completion. Approximately 600,000 m2 of evaporation area has now been built, currently housing 1,000t LCE contained inventory. This evaporation area is sufficient to produce a lithium chloride volume of approximately 2.4 ktpa LCE. The key processing parameters, including raw brine well average flow rates, Li grades and evaporation rates are all aligned with the Phase 1 DFS. Based on the rate of construction and the results achieved to date, the HMW project remains on track to start production in H1 2025.
In addition, Galan’s team are analysing options to reduce capital expenditure, these opportunities are focussed on selecting the minimum infrastructure required to commence production of Phase 1. Multiple trade-off exercises are being assessed such as the analysis of rental options for energy supply, reduction of the size for selected buildings, usage of independent smaller control systems, instead of a larger central control system for all facilities.
As previously announced, the HMW project was separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H1 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The very positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
Ponds 1 and 2 completed with evaporation continuing
Pond 3 liner installation and Pond 4 earthworks
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are very proud of the solid progress being made by the HMW Phase 1 construction team. With more than one third of the project completion now achieved, Galan is well on its way towards its targeted commencement of production in H1 2025. Galan would like to acknowledge and sincerely thank the Government of the Catamarca Province in Argentina for their continued support, evidenced by the recent agreement signed to commercialise lithium chloride concentrate from HMW. We are excited about the opportunities this agreement now presents to Galan’s future”
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This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Activities Report to 31 March 2024
HIGHLIGHTS
- First phase of drilling completed at Abbotts North Project (Buttamiah Prospect), WA, with 11 RC holes drilled totaling 1,623m
- Assay results from Abbotts North confirm continuation of LCT system and delineate targets to north and east
- Montague field work commenced identifying abundant newly mapped pegmatites
- Field programs planned at Montague, Yalgoo and Abbotts North for June Quarter
- Demerger transaction completed 25 January 2024
- Transition underway to new leadership team at PLC to align with new strategy
Safety and Environment
Premier1 conducted field exploration activity with no reportable ESG related incidents in the quarter.
Abbotts North Project
Premier1 successfully completed the first phase drilling program at Abbotts North, located 35km north of Meekatharra, Western Australia. The program was completed on time and under budget. A total of 11 RC holes for 1,623m were drilled to test the main outcropping pegmatites at the Buttamiah Prospect.
Nine of 11 drill holes intercepted pegmatites of on average 1 to 3m and locally up to 4m thickness hosted within an amphibolite unit. Occasionally, lepidolite has been identified and further analyses are planned to determine the presence of spodumene in the system. Assays were released subsequent to the end of the quarter. The results show elevated lithium across the stacked pegmatites of up to 0.41% Li2O, confirming the continuation of the LCT system down depth and along strike.
Additional studies of the outcropping pegmatites in the larger Buttamiah Prospect area including fractionation vectoring using K/Rb ratios suggest the core of the system to be located to the east of the previous drilling. In addition, the data indicate that LCT pegmatites occur within the granites to the north of the drill area. Further mapping and sampling of pegmatites in these areas as well as over the remaining tenement package has commenced. Focus is to delineate drill targets of higher grades and thicknesses that have the potential to form a significant lithium deposit within the existing LCT system.
Figure 1: Cross-section of intercepted pegmatites showing significant results >0.05% Li2O.
Premier1 also completed a soil geochemistry program at the Abbotts North project for a total of 600 samples. Factor analysis (FA) was employed with the purpose of identifying multielement signatures within the soil assay samples which may be indicative of Li mineralisation. The work was successful in identifying spatial and geochemical associations between lithium mineralisation and mapped geology.
Montague Project
Premier1 commenced pegmatite mapping and rock chip sampling at the Montague lithium project. The Company has identified abundant new pegmatites along a mafic-ultramafic and siliclastic sequence of the greenstone belt up to 1km west of the main granite contact to the east. Potassium-Rubidium (K/Rb) ratios defined at least two areas of interest that showed high fractionation of below 40 that indicate prospectivity for Lithium-Caesium-Tantalum (LCT) pegmatites.
The recently commenced first phase of field mapping and sampling has identified pegmatites in these two areas of interest. Occasionally, green mica has been identified and a first set of samples has been sent to the lab. Feldspar samples were taken of all newly mapped pegmatites to determine fractionation trends for further target vectoring and identification of potential drill targets for the second half of 2024.
The project covers the south-eastern portion of the Gum Creek Greenstone Belt which consists of early–mid Archean greenstone belts, intruded by late Archean granitoids and overlain by sporadic Proterozoic metasediments. Vast areas of Cainozoic sediments and transported regolith cover the region. Margins of the belt are typically dominated by contact-metamorphosed basalts and banded iron formations.
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This article includes content from Premier1 Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
