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Admission to the NEX Exchange Growth Market
The directors of
Company Website: |
Australian Securities Exchange Website: |
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https://www.asx.com.au/index.htm
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Admission to the NEX provides the Company with increased exposure and access to European investors including those in the established
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Company Information
Sector
Metals & Mining
Registered Address
West Leederville
WA, 6007
Phone Number
+61 8 6181 9792
Details of Directors
Admission to Other Markets
The Company is also listed on the
Securities to be Admitted
The securities being admitted to trading on NEX hold the same rights and has the same laws attached as those tradeable on the markets on which EUR is currently also tradeable. For more information on such rights and laws attached, please visit the relevant section of the Company's website at https://europeanlithium.com/
Under the Company's constitution, the Company's directors have the power to issue securities (including ordinary shares). Whilst admitted to the ASX, the Company is subject to the Listing Rules, which limit the number of equity securities an entity can issue in any 12-month period without prior shareholder approval to:
1. 15% of the entity's issued share capital; and
2. in the event the entity's shareholders have approved the limit at the entity's annual general meeting, and subject to complying with certain restrictions (primarily as to market capitalisation and price) and conditions (primarily as to disclosure of the recipients of the issue and consideration), a further 10% of the entity's issued share capital.
The above limitations are subject to various exceptions, including the following:
1. a pro-rata issue to all shareholders (including, subject to conditions underwritten and shortfall amounts);
2. an offer under a share purchase plan in accordance with ASIC relief;
3. an offer under an employee share plan that has been approved by shareholders
4. issues under a dividend reinvestment plan; and
5. an issue on conversion of securities where the underlying security was issued in accordance with the Listing Rules.
Financial disclosures
Full financial disclosures and audited accounts for the last three years are available on the Company's website at https://europeanlithium.com/ . In the opinion of the Directors, having made due and careful enquiry, the working capital available to the issuer and its group will be sufficient for the period of at least twelve months following Admission.
Specialist Reports
Specialist reports commissioned by the Company as well as competent persons' reports and feasibility studies etc. are accessible on the Company's website at https://europeanlithium.com/
United Kingdom Tax
Taxation of dividends
Under current
Pursuant to Finance Act 2016, as of
a) 7.5 per cent. (basic rate taxpayers);
b) 32.5 per cent. (high rate taxpayers); and
c) 38.1 per cent. (additional rate taxpayers).
Dividend income that is within the dividend allowances counts towards an individual's basic or higher rate limits - and will therefore affect the level of savings allowance to which they are entitled, and the rate of tax that is due on any dividend income in excess of this allowance. In calculating into which tax band any dividend income over the
·
· Shareholders within the charge to
· Dividends paid on the Common Shares to other shareholders within the charge to
Non-
Shareholders who are not resident in the
Risk factors
Risks associated with the Company and its operations are contained within the prospectuses on the Company's website. Since publication of such, the Company has completed the Pre-Feasibility Study ("PFS") at its
Feasibility and Development Risks
Given the stage of the Company's projects, there will be a complex, multidisciplinary process to be undertaken to complete a definitive feasibility study ("DFS") to support any development proposal. There is a risk that the DFS and associated technical works will not achieve the results expected. There is also a risk that even if a positive DFS is produced, the relevant project may not be successfully developed for commercial or financial reasons.
Resource and reserve estimates
Resource and reserve estimates are inherently prone to variability. They involve expressions of judgement with regard to the presence and quality of mineralisation and the ability to extract and process the mineralisation economically. These judgments are based on a variety of matters such as drilling results, past experience, knowledge and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. This may result in alterations to development and mining plans which may, in turn, adversely affect the Company's operations and reduce the estimated amount of mineral resources and ore reserves available for production and expansion plans.
Future approvals risk
The Company has all relevant approvals to conduct its current operations. Prior to commencement of any future operations (including mine development and operation) for which the Company requires higher tenure, the Company will need to obtain the relevant approvals for such higher tenure. There is no assurance that such approvals will be received or that the conditions within the approvals will not be overly onerous. The potential incidence and impact of those factors cannot be accurately predicted and conditions imposed on approvals may impede the operation or development of a project and even render it uneconomic.
Ability to exploit successful discoveries
It may not always be possible for the Company to exploit successful discoveries which may be made in areas in which the Company has an interest. Such exploitation will involve obtaining the necessary licences or clearances from relevant authorities that may require conditions to be satisfied and/or the exercise of discretions by such authorities. It may or may not be possible for such conditions to be satisfied. Further, the decision to proceed to further exploitation may require participation of other companies whose interests and objectives may not be the same as the Company's.
Operating risk
The operations of the Company may be affected by various factors, including operational and technical difficulties encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure or plant breakdown or unanticipated metallurgical problems, which may affect extraction costs; adverse weather conditions (e.g. significant rainfall), delays in construction of tailings dam wall lifts, industrial and environmental accidents, industrial disputes or unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment may have an adverse effect on the operations and production ability of the Company by increasing costs or delaying activities.
The Company's operations will depend on an uninterrupted flow of materials, supplies, equipment, services and finished projects. Due to the geographic location of the Company's projects, it will depend on third parties for the provision of road, port, marine, shipping and other transportation services. Contractual disputes, demurrage charges, classification of commodity inputs and finished products, road and port capacity issues, availability of trucks and vessels, weather conditions, labour disruptions or other factors may have an adverse impact on the Company's ability to transport materials according to schedules and contractual commitments. If these circumstances arise, they may adversely affect the Company's business, results of operations, financial performance and the value of its Shares.
Geotechnical risk
Geotechnical risks arise from the movement of the ground during and following mining activity. This may result in temporary or permanent access to a mine being cut off. The loss of access may have a significant impact on the economics of the ore body. Additionally, significant additional costs may result from designing and constructing alternative access drives which will also impact the economics of the mining operation, potentially making the mine uneconomic.
Assessment of the extent and magnitude of ground movements that could take place or that have taken place within the mine and surrounding area will be evaluated by the Company.
Occupational health & safety
The exploration and mining industry has become subject to increasing occupational health and safety responsibility and liability. The Company may become liable for past and current conduct which violates such laws and regulations, which may be amended by the relevant authorities. Penalties for breaching health and safety laws can be significant and include criminal penalties. Victims of workplace accidents may also commence civil proceedings against the Company. These events might not be insured by the Company or may be uninsurable. In addition, any changes in health and safety laws and regulations may increase compliance costs for the Company. Such an event would negatively impact the financial results of the Company.
Commodity Risk
As an explorer for lithium, any earnings of the Company are expected to be closely related to the price of lithium and other commodities.
Commodities prices fluctuate and are affected by numerous factors beyond the control of the Company. These factors include worldwide and regional supply and demand for lithium and other commodities, general world economic conditions and the outlook for interest rates, inflation and other economic factors on both a regional and global basis. These factors may have a positive or negative effect on the price for the Company's securities.
Unforeseen Expenditure Risk
Expenditure may need to be incurred that has not been considered in this PFS. Although the Company is not aware of any such additional Expenditure requirements, if such expenditure is subsequently incurred this may adversely affect the expenditure proposals and activities of the Company, as the Company may be required to reduce the scope of its operations and scale back its exploration programmes. This could have a material adverse effect on the Company's activities and the value of its Shares.
The above list of risk factors should not to be taken as exhaustive of the risks faced by the Company or by Shareholders. Shareholders should consider that investment in the Company is highly speculative and should consult their professional advisers before deciding whether to take up their Entitlement.
Substantial Shareholders
Shareholder
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Shares
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% Holding
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242,684,664
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44.30
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65,560,586
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11.97
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57,032,101
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10.41
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24,801,347 |
4.53 |
Veni Vidi Vici Ltd |
20,249,354 |
3.70 |
At the date of admission to NEX, there is a total of 547,876,022 Ordinary Shares on issue.
The percentage of securities in public hands (as defined by the NEX Exchange Growth Market Rules for Issuers) is 73.50 per cent. The percentage of securities not in public hands is 26.50 per cent.
The Ordinary Shares are eligible for CREST settlement. There are no restrictions on the transfer of Ordinary Shares. The NEX Exchange Growth Market, which is operated by
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About
For further information please visit www.europeanlithium.com or contact:
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+61 8 6181 9792 |
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NEX Corporate Adviser |
+44 207 220 1666 |
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Tavistock ( |
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+44 207 920 3150 / +44 778 855 4035 |
This information is provided by RNS, the news service of the