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European Lithium strengthens financial position through debt conversion

European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) (NEX:EUR) has strengthened its financial position by converting $742,918 of current debt into equity.

This follows the company arriving at an agreement with a number of creditors and short-term loan holders, subject to regulatory approval.

Debts will be converted based on a share price of 4.5 cents with a free attaching 1 for 1 unlisted option with an exercise price of 5 cents expiring on July 31, 2022.

This price of 4.5 cents has been determined based on the companys 20-day VWAP prior to May 22, 2020.

The debt conversion comes as the company continues to strengthen its strategy of working to be the first local supplier of lithium into an integrated European battery supply chain.

Key partner secured

A key move in this process came this week through securing a partner in global EV technology metals leader Talaxis Limited.

The signing of a strategic engagement agreement will see Talaxis and EUR forge a partnership with many resulting advantages for EUR, including completion of a definitive feasibility study for the Wolfsberg Lithium Project in Austria.

This arrangement also sees the appointment of Talaxis managing director Daniel Mamdou-Blanco, a highly experienced mining and finance executive, as a strategic advisor to EUR.

Talaxis will provide a number of services, including managing and establishing commercial relationships, contract negotiations and strategic market research.

“Huge coup”

The agreement prompted EUR non-executive chairman Tony Sage to state: “Given the unprecedented times we live in it is a huge coup for EUR to have secured the engagement with Talaxis and above all the vast knowledge and experience of Daniel.

“The appointmRead More – Source