European Lithium Gets Creative: Turns Non-Core Assets into Cash in Western Australia

Australia: Lithium Ltd has divested a non-core asset located in Western Australia's northwest as part of its strategy to concentrate on Europe's expanding battery metals industry. The company has signed a binding agreement with Moosh Ltd, which will purchase the E47/4144 exploration tenement for A$1 million in cash or ASX company shares. EUR will still have exposure to any minerals extracted from the property through a 1% net smelter royalty. The sale aligns with the company's plan to prioritize securing battery commodities for Europe's green energy transition. The transaction is subject to certain conditions precedent, and EUR and Moosh anticipate finalizing the agreement by the end of September.

Moosh and European Lithium are expected to conduct thorough due diligence before finalizing the agreement. During this period, Moosh has agreed to pay EUR A$100,000 for maintaining the tenements. By divesting its WA tenement, European Lithium can now concentrate on its primary battery mineral ventures. The company is currently progressing its wholly owned Wolfsberg Project in Austria, aiming to become Europe's largest local Lithium supplier and a key player in the region's integrated battery supply chain. Lithium is a vital element in the battery metals industry, as it is a crucial component of high-performance Lithium-ion batteries used to power electric vehicles and other sustainable energy solutions.

European Environment Agency reports a consistent rise in the number of electric vehicles (EVs) in Europe, which accounted for almost a quarter of all new car registrations in 2022. As the demand for EVs continues to escalate, Europe is taking proactive measures to develop a regional supply chain that caters to its manufacturing requirements and consolidates the continent’s position as a top contender in the global EV market. European Lithium's Wolfsberg asset forms the cornerstone of its European Lithium outlook, and it is well-positioned to play a pivotal role in the local energy revolution. A mining permit in hand and a proven track record of economic feasibility, the project boasts an impressive 12.88 million tonnes of measured, indicated, and inferred resources. The definitive feasibility study conducted in March revealed a post-tax net present value of $1.5 billion, making this venture an exciting opportunity for potential investors.

While Wolfsberg is critical to EUR's long-term strategy, the company has also acquired three new exploration projects in the acclaimed Styria mining district back in late June.

EUR has secured exploration licenses for Bretstein-Lachtal, Klementkogel, and Wildbachgraben assets, covering an area of 114.6 square kilometres. EUR intends to leverage these new projects and strong sampling results, such as 3.98% Lithium oxide, to expand its operations. The newly acquired projects are near the flagship Wolfsberg camp, and the company plans to commence initial works at the Bretstein-Lachtal project with stakeholder engagement, mapping, sampling, and drill target definition. Lithium is not only focusing on its Austrian interests but also aiming to broaden its exposure by exploring and developing other valuable assets.

Earlier this year, the company renegotiated terms to acquire a Ukraine-based firm that is seeking 20-year special permits to extract and produce Lithium at the Shevchenkivske and Dobra projects in Ukraine. Furthermore, the company has a 50% stake in John Wally Resources Pty Ltd in Western Australia, which has been granted two tenements (E47/4534 and E47/4532).

John Wally Resources Pty Ltd has applied for additional tenements in Western Australia, and these applications are currently under review. EUR remains devoted to its comprehensive growth strategy and is actively seeking out new opportunities that align with it, while still maintaining the top priority of the Wolfsberg project. In terms of investments, European Lithium holds an 11.5% interest in Cyclone Metals Ltd, which is also listed on the ASX, as well as 150 million shares in iron ore firm CuFe Ltd. Tanbreez Mining Greenland A/S holds an exploitation permit for rare earths in Greenland, while the company has a 7.5% stake in it.