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Monday, September 25, 2023

Conditional Acquisition of Petro Consulting and $20m Placement

European Lithium Limited (ASX:EUR,FRA:PF8, OTC:EULIF) (EuropeanLithiumor the Company) is pleased to announce that it has entered into binding agreements under which: EUR will acquire Petro Consulting LLC, a Ukraine incorporated company that is applying (through either court proceedings, public auction and/or production sharing agreement with the Ukraine Government) for 20 year special permits for the extraction and production of lithium at two projects in Ukraine, from Millstone and Company Global DW LLC (Millstone); and Millstone will subscribe for $20m in shares, with $2.5m invested immediately, $2.5m subject to shareholder approval (to be sought at the forthcoming AGM) and the balance of $15m following completion of the acquisition of Petro Consulting.


  • European Lithium has agreed to purchase Petro Consulting, a Ukraine company that is applying for special permits to extract and process lithium for two Ukraine lithium projects
  • The two Ukrainian projects are Shevchenkivske and Dobra, which are considered underexplored by modern exploration methods
  • Acquisition conditional upon Petro Consulting being issued the relevant special permits for the Extraction and production of lithium (through court proceedings, public auction process, or production sharing agreement), EUR shareholder approval (so that Millstone can acquire more than 20% of EUR) and certain other conditions, with an end date for completion 12 months from signing
  • Shevchenkivske and Dobra Lithium Projects contain significant Exploration Targets based on historical data
  • Total purchase price $20m in shares plus $50m in performance shares that convert at EUR’s then prevailing share price up to ≈526mshares1
  • Followingcompletionoftheacquisition,EUR intends to undertake a maiden JOR Ccompliant mineral resource estimate based on verification works (twin-hole drilling)
  • In conjunction and given the mutual synergies through combining the Ukraine projects with EUR’s advanced Wolfsberg lithium project, confidence that Millstone has in Petro Consulting being issued special permits and to fund further exploration and pre-feasibility and feasibility studies on the Ukraine projects, Millstone has agreed to invest $20m in EUR, with $2.5m immediately,$2.5msubjecttoshareholderapproval(tobesoughtattheforthcomingAGM) and $15m conditional upon completion of the acquisition of Petro Consulting byEUR
  • Mykhailo Zhernov, a representative of Millstone, will be appointed to EUR’s board upon completing the first tranche of the placement, with a further director to be appointed following acquiring PetroConsulting
  • Pending completion of the Petro Consulting acquisition, the Company’s first priority remains finalising the Wolfsberg Lithium Project DFS
Read the full article here.

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