SYDNEY: European Lithium Limited has acquired a 20% interest in Jadar’s Weinebene and Eastern Alps Lithium Projects (Jadar 80% interest), located adjacent to Wolfsberg Project in Austria.
European Lithium Limited (ASX:EUR) announced to shareholders that the Company has entered into a Collaboration Agreement with Jadar Resources Limited (ASX: JDR) (Jadar). The Company has also acquired a 20% interest in Jadar’s Austrian Lithium assets from their JV partner.
Jadar holds an 80% interest in Subsidiary Jadar Lithium GmbH (Jadar Lithium), the holder of the Weinebene and Eastern Alps Projects. Jadar has waived its first right of refusal over the remaining 20% interest in Jadar Lithium, allowing Exchange Minerals Limited (EML) to sell their 20% interest to EUR for a consideration of $125,000 cash and 6,666,666 fully paid ordinary shares in the capital of the Company with 1 attaching option exercisable at $0.075 each on or before 31 July 2022.
Completion of the transaction is subject to Jadar waiving all pre-emptive rights over EML’s interest in Jadar Lithium and consenting to the transfer, and confirmation of no breach of warranties by EML.
The Collaboration Agreement includes the establishment of a Technical Advisory Committee for the purpose of jointly collaborating in connection with the Weinebene and Eastern Alps Projects and sharing information to identify the best options to advance those assets and operations. This includes making recommendations for exploration programs, budgets and development scenarios in relation to the assets and operations.
The Weinebene and Eastern Alps Lithium Projects lie only 20km to the east EUR’s Wolfsberg Project (JORC compliant mineral resources of 11Mt @ 1% Li2O1) and as such provide both parties with optionality in terms of future development and production scenarios.
Jadar Resources’ Executive Director Adrian Paul commented: “This partnership and Collaboration Agreement formed with European Lithium will allow Jadar to progress our Austrian Lithium assets with the assistance of a key strategic partner with significant JORC compliant resources neighboring our exploration assets. We are thrilled to have the opportunity to work with European Lithium and develop detailed exploration programs which will see these Projects progress further.”
European Lithium’s Chairman Tony Sage commented: “This is a fantastic result and gives European Lithium access to a greater portfolio of highly prospective Austrian lithium projects which have the potential to increase the useful life of the proposed infrastructure for our Wolfsburg Lithium Project. The proximity of Jadar’s lithium Projects to Wolfsberg presents a number of potential synergistic benefits for both companies and we look forward to beginning work to further the exploration activities at the Projects.”
European Lithium is a listed (ASX: EUR)(FRA: PF8)(VSE: ELI) mining exploration and development company focusing on its wholly owned Wolfsberg Lithium Project in Austria.
European Lithium (ASX: EUR) share price
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10 May, 3:46 pm GMT+10 ·