EUROPEAN LITHIUM SIGNS BINDING AGREEMENT FOR
The Board of
The Winance Finance Facility replaces the Company's existing
The Company continues to engage in dialogue with institutional parties and is focused on engaging a strategic investor to alleviate, or minimise, the funds the Company draws down under the Winance Finance Facility.
Any funds advanced under the Winance Finance Facility will be used to repay the residual amount owing to Magna, to fast-track the completion of a DFS at the
The Finance Facility is by way of the issue of convertible securities in the Company. An initial amount of
Material terms and conditions are outlined in Annexure A.
• EUR will receive
• Further drawdowns of
o a cooling off period calculated based on the value of the tranche and average trading volumes during the preceding 60-day period; and
o prior approval by EUR's shareholders.
• There are no fees or penalties if no subsequent drawdowns are made.
• The convertible notes will be 100% of the par value
• The convertible notes are, subject to prior shareholder approval where required, convertible at any time by the Investor at 92% of the lowest closing VWAP over ten (10) days prior to the conversion date, providing that the conversion price shall not in any case be lower than
• In the event the conversion price is less than the Floor Price at conversion, the Company will issue the number of shares equal to the conversion amount divided by the Floor Price with the shortfall amount (calculated based on the conversion amount less the number of shares equal to 90% of the lowest closing VWAP over ten (10) days prior to the conversion date) payable in cash.
• In the event the closing VWAP for any five (5) day period falls below 135% of the Floor Price, the Investor, at their discretion, shall have the right to decline further drawdowns. Drawdowns may resume if the VWAP remains over 135% of the VWAP for 20 consecutive days
• The minimum conversion amount is
• The convertible notes bear no interest.
• The convertible notes have a maturity date of 36 months from the date of issue.
• The convertible notes are unsecured.
• The Investor will receive a commitment fee of 3% of the investment amount at the funding of each tranche payable in cash.
• In the event of default, the Investor is entitled to issue a redemption notice which requires the Company to repay the outstanding amount together with interest at 10% per annum (accruing from issue to redemption).
• The Company will seek shareholder approval to issue shares in accordance with the convertible note facility as required
• A fee of
• EUR gives warranties considered typical for a financing facility of this nature.
We bring significant resources and credibility and maintain a long-standing commitment to our principal values of honesty, integrity, and loyalty. We deliver an appealing performance to our partners through traditional and inventive financing products, ensuring to stay at forefront of the ever-evolving industry.
Winance worked on the
Kapital Global is an advisory firm based in the
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The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Visit the Company's website to find out more about the advanced
For further information please contact:
+61 861 819 792
NEX Corporate Adviser
+44 207 220 1666
This information is provided by RNS, the news service of the