European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to announce the execution of binding Heads of Agreement, pursuant to which European Lithium has agreed to acquire, and Technology Metals plc (TM1) has agreed to sell 100% of the issued share capital of LRH Resources Limited, its fully owned subsidiary, that holds 100% of the rights, title and interest in the Leinster Lithium project in Ireland (Acquisition) in an all script transaction. Completion of the transaction is subject to technical and legal due diligence to be completed by EUR and other conditions customary for this type of transaction.
HIGHLIGHTS
European Lithium has entered into a binding agreement with Technology Metals plc, a UK-based company listed on the standard list of the London Stock Exchange, to acquire 100% of the issued share capital of its fully owned subsidiary, LRH Resources, that holds the rights, title and interest in the Leinster Lithium Project in Ireland. Consideration of $US10 million to be settled through the transfer of 1,234,568 shares held by European Lithium in Critical Metals Corp (Nasdaq: CRML) at a deemed share price of $8.10 USD/ share. Exploration program is targeting lithium prospects in the underexplored lithium province of Leinster, Ireland.Initial exploration program covering 23 prospecting licenses of ca. 761 km2, demonstrated the presence of 24 intervals of lithium-bearing spodumene pegmatites across nine drill holes with grades up to 2.57 % Li2O at Knockeen.Leinster Lithium Project, drilling confirmed LCT pegmatite dike swarm within East Carlow Deformation Zone, surface assays and trench samples confirmed the range up to 3.75 % Li2O. European Lithium continues to build a quality exploration projects portfolio in prospective lithium provinces.
The project is situated south of Dublin in the Leinster Granite Massif within the same key tectonic zone and along strike to the Blackstairs Lithium (Ganfeng / ILC joint venture) Avalonia Project.
Tony Sage, Chairman of EUR, commented: “The acquisition shows our commitment to continue expanding in the European lithium sector and illustrates our capability to identify and secure ground in highly prospective lithium provinces, leveraging our world class exploration and project development expertise, combined with a strong balance sheet. This also demonstrates the value of our investment in Critical Metals Corp. As we move forward, we can utilise the investment again and again without depleting our cash reserves”.
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