European Lithium (ASX:EUR) partners with Traxys for Wolfsberg Project

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European Lithium (ASX:EUR) partners with Traxys for Wolfsberg Project

ASX EUR, EUR MoA, European Lithium Traxys deal
Image source: © Ronstik | Megapixl.com

Highlights

  • For the Wolfsberg Lithium Project, European Lithium signed a Memorandum of Agreement (MOA) with Traxys Europe S.A.
  • EUR will support Traxys to secure working capital for the Wolfsberg Project.
  • Both the companies will discuss the potential for direct investment by Traxys.

European Lithium Limited (ASX:EUR) announced that it has entered a multi-tiered non-binding memorandum of agreement (MOA) with Traxys Europe S.A. to support the development of the Wolfsberg Lithium Project in Austria.

Key Highlights –

  • As per the MOA, EUR will negotiate suitable commercial terms for a product offtake and marketing agreement for its Lithium Hydroxide and, if applicable, any by-products from the Wolfsberg Project.
  • Traxys will be granted exclusivity until Q1 FY22 to finalise the agreement.
  • The company will also support EUR to secure working capital and other project financing facilities for the Wolfsberg Project. Traxys has already introduced the company to financial institutions concerning project finance.

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Both the companies will also discuss the potential for direct investment by Traxys for the successful commercialisation of the Wolfsberg Project.

About Traxys

Traxys Europe is a part of the Traxys Group, operating from a network of offices and facilities in over 20 locations worldwide, and has comprehensive global coverage encompassing all key markets, including Europe, Africa, South America, and Australasia.

Bottomline

Finalising the offtake agreement is likely to be a milestone for EUR. The company anticipates partnering with Traxys will help the company retain flexibility while delivering the best results for the shareholders.

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