European Lithium (ASX:EUR) has resumed trading on the ASX after confirming Sizzle Acquisition Corp. (NASDAQ:SZZL) and Critical Metals Corp have secured an additional investment facility managed by a New York-based financial group.
The investment facility is expected to provide Critical Metals Corp with US$10 million in capital at closing and will be used to fund the development of the Wolfsberg Lithium Project in Austria.
In October 2022, European Lithium entered into a business combination agreement with Sizzle, a US special purpose acquisition company listed on NASDAQ. Part of the deal includes European Lithium selling down its interest in its wholly owned flagship Wolfsberg Lithium Project and merging with Sizzle via a newly formed, lithium exploration and development company called Critical Metals Corp.
Critical Metals Corp is expected to be listed on NASDAQ under the symbol CRML.
Upon the closing of the transaction, European Lithium will be issued US$750 million worth of ordinary shares in Critical Metals
Upon the closing of the transaction, European Lithium will be issued US$750 million worth of ordinary shares in Critical Metals.
European Lithium shareholders approved the transaction on 20 January 2023. Once the F-4 is declared effective by the US Securities and Exchange Commission (SEC), the Sizzle board will convene a shareholding meeting to approve the deal.
European Lithium Chairman Tony Sage says the company and Critical Metals are excited to welcome another new investor, and more committed equity capital to fund the transaction as well as the Wolfsberg Project.
The company reports that substantial progress has been made in the development plan for the Wolfsberg Project including securing a mining permit. Spodumene mined from the project has demonstrated its capability to supply high-purity lithium (99.6% lithium carbonate equivalent) at the pilot plant.
The Mineral Resource Estimate shows a deposit with 12.88Mt of measured, indicated, and inferred classified resources at 1% Li2O grade in Zone 1 only.
A Definitive Feasibility Study (DFS) demonstrates the project will have a post-tax NPV of US$1.5 billion @ WACC1 (Weighted Average Cost of Capital) 6%, mined over about 15 years.
Meanwhile, Critical Metals has entered into a share subscription facility for up to US$125 million with GEM Global Yield, a Luxembourg-based private alternative investment group. Proceeds from the facility are expected to be used to fund the development of the Wolfsberg Project.
Write to Adam Orlando at Mining.com.au
Images: European Lithium
