EANS-News: European Lithium Limited /Ballot Victory Over Strategic Tenement in North West WA and SPP - ATTACHMENT
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Capital Measures/Company Information
West Leederville - EUROPEAN LITHIUM WINS LANDMARK BALLOT VICTORY OVER STRATEGIC
TENEMENT IN NORTH WEST WA AND OFFERS SHARE PURCHASE PLAN TO EXISTING
SHAREHOLDERS
Highlights
* EUR secures E47/4144 in ballot under the WA Mining Act held on 18 September
2020.
The ballot was contested by 13 other applicants in addition to EUR;
* Subject to Ministerial approval, upon grant E47/4144 to be 100% legally owned
by EUR, and 50% beneficially held by EUR and 50% for a third party;
* E47/4144 is a newly created tenement of approximately 130km 2 which surrounds
the Chinese owned Mt Anketell iron deposit (see map below
* Several recent discoveries of conglomerate gold in the region and in
particular in the Artemis JV Project tenure adjacent and to the south;
* EUR will immediately commence reconnaissance exploration to test the
conglomerate gold potential within the tenement;
* Of equal importance, EUR will also commence desktop studies of the iron ore
deposit extension opportunities that were previously identified by Cape Lambert
when it held the Project;
* EUR has commenced discussions with its recently appointed strategic partner
(27 May 2020), Talaxis Limited ("Talaxis") in respect of a number of possible
funding opportunities regarding E47/4144. Talaxis is a wholly-owned subsidiary
of Noble Group Holdings Limited which is a significant world-wide iron ore
trader and iron ore mine owner as well as being a global leader in EV technology
metals project development; and
* In addition to the successful placement to raise $2.1m (22 September, 2020)
EUR will also undertake a Share Purchase Plan (SPP) to raise up to $2m.
European Lithium Limited (ASX:EUR, FRA:PF8, NEX:EUR, VSE:ELI) (EUR or the
Company) is pleased to advise the following:
On 23 March 2019 tenement E47/1462-I, held by MCC Australia Sanjin Mining Pty
Ltd, expired and was not renewed in the required time. At 8:30am on 25 March
2019 European Lithium Ltd (EUR) applied for exploration licence E47/4144 under
section 58 of the Western Australia Mining Act 1978 (Mining Act). At the same
time the Department of Mines, Industry Regulation and Safety (DMIRS) received
applications for 13 other exploration licences over the same or a similar area.
Under section 105A(3) of the Mining Act these tenements (14 in total numbered
from E47/4136 to 4149 consecutively) were placed into a ballot that was drawn on
18 September 2020. EUR tenement E47/4144 was drawn first in matters 4, 5 and 7
relating to the ballot. The Company confirmed the new tenement blocks with DMIRS
on 21 September 2020 and, when granted, the configuration of E47/4144 will be as
per the map below which equates to approximately 130km2 .
Subject to Ministerial approval and upon grant, E47/4144 to be 100% legal owned
by EUR and 50% beneficially held by EUR, with the remaining 50% held by Wombat
Pty Limited, an unrelated private company that identified the application. The
parties will in due course negotiate terms upon which activities will be carried
out on the tenement.
EUR Chairman Tony sage commented:
"The ballot victory in our favour is a massive win for the Company. It allows
EUR and its strategic advisors Talaxis to continue the progress of the advanced
Wolfsberg Lithium Project in Austria at a time when there is significant EU
focus on regional EV metal development as well as now add (for nil consideration
other than management time) a strategic land holding in the North West of
Western Australia. EUR won approximately 90% of the available land holdings in
the ballot and importantly, as far as we are aware the tenement area has never
been tested for conglomerate gold given it is only a recently discovered
geological phenomenon in the last few years. We can't wait to commence
reconnaissance exploration to test the potential for conglomerate gold. We are
also excited with the iron ore potential of the tenement given my intimate
knowledge of the area acquired as Chairman of Cape Lambert at the time the
Anketell Project was sold to the Chinese in 2008."
Conglomerate Gold Potential
Given recent success in conglomerate gold in the region, EUR intends to start
immediate exploration to conduct field reconnaissance and mapping of geology and
historical workings. This work will be followed by obtaining the necessary
government approvals (pending grant) to construct a suitable field exploration
program that may involve the development of costeans, drilling etc. Based on the
somewhat random distribution of nugget gold in a conglomerate environment, the
Company will look to undertake larger than normal samples, similar to programs
undertaken by Novo to the South at the Comet and Purdy's Reward Projects.
In addition to an immediate sampling program (pending grant of the tenement),
the Company intends to explore for the source of the gold found in the
conglomerate lithology by:
a) Collecting all previous information on the tenement;
b) Field mapping to identify any possible shear hosted intrusion related sources
and;
c) Investigating the most suitable geophysics and geochemistry to use in
targeting deeper source gold structures.
EUR believes that it is in an exceptionally good position in acquiring, by
ballot, such a well centred tenement with the potential for both conglomerate
and shear hosted gold mineralisation as is found in the Novo, Artemis and De
Grey tenure to the south and east.
The Company looks forward to updating shareholders as soon as possible as it
puts together various geological summaries of the tenement and commences
reconnaissance exploration.
Share Purchase Plan
The Company will offer all existing eligible investors the opportunity to
subscribe for new shares at $0.0475 per Share up to a maximum of 631,579 shares
(maximum of $30,000) per investor under a Share Purchase Plan (SPP). The SPP
will be capped at $2.0M. Funds raised under the SPP will be used primarily
towards exploration on E47/4144.
The SPP issue price is a 19.2% discount to the 5 day VWAP of the Company's
shares.
An indicative timetable for the capital raisings is included in Annexure "A".
This announcement has been authorised for release to the ASX by the Board of the
Company.
Tony Sage Non-Executive Chairman European Lithium Limited
-END-
Competent Person The information in this announcement that relates to
Exploration Results and Resource Estimation is based on information compiled by
Mr Olaf Frederickson. Mr Frederickson is a Member of The Australasian Institute
of Mining and Metallurgy (AusIMM) and has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as a Competent Person as defined
in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the "JORC Code"). Mr Frederickson
believes that the information in this announcement pertaining to former resource
reporting is an accurate representation of the available data and studies for
the material mining project. Mr Frederickson is a consultant to European Lithium
and consents to the inclusion in the report of the Exploration Results in the
form and context in which they appear.
Annexure "A"
Share Purchase Plan Timetable
Event Date
Record date for eligibility to participate in 5.00pm (AWST), 22 September 2020
the SPP
Dispatch of SPP offer Documents and SPP offer 7 October 2020
open
SPP closing Date 3 November 2020
Announcement of SPP Participation Results 6 November 2020
Issue of new shares under the SPP 12 November 2020
The timetable is indicative only and remains subject to change at EUR's
discretion, subject to compliance with applicable laws and the ASX Listing
Rules.
Further inquiry note:
info@europeanlithium.com
end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/10207074/5/10562320/1/2116315.pdfissuer: European Lithium Limited
Harrogate Street 32
AU-WA6007 West Leederville
phone: +61 8 6181 9792
FAX:
mail: ir@europeanlithium.com
WWW: www.europeanlithium.com
ISIN: AU000000EUR7
indexes:
stockmarkets: Frankfurt, Wien
language: English
Original content of: European Lithium Limited, transmitted by news aktuell