Home » News » AIM News » European Lithium – IPO– Recharging Lithium in Austria
European Lithium

European Lithium – IPO– Recharging Lithium in Austria

European Lithium (EL) is seeking to capitalise on the strong market fundamentals supporting lithium, a critical component for batteries used to power electric vehicles (EV). El has announced its intention to raise £5m via an AIM listing, in order to develop the Wolfsberg project in Austria. Deal proceeds will be used to bring the project into production and serve a market that relies on imports. The company already has a substantial amount of resource data available as well as a mining license in place which the directors intend to leverage to examine routes for a fast-track development plan. EL will ultimately look to produce over 9000 tonnes per annum of Lithium carbonate equivalent mineral; around 7% of current world mine supply. Growth in world demand is projected to be in excess of 10% per annum compounded over the next decade.

 

 

The AIM introduction comes against a backdrop of recent announcements by Tesla, concerning its Powerwall and Power Pack products, which will complement demand for lithium-ion batteries from TLSA’s EV battery ‘Gigafactory’.

 

 

The Wolfsberg Project was previously owned by Global Strategic Metals, a company which was listed in Australia. It is being headed up by Dr Steve Kessler, who was previously CEO of Collahuasi and an Executive Director at Billiton PLC.

 

 

Paras Amlani, an Institutional Broker at VSA Capital, said that “European Lithium looks set to become Europe’s first major lithium mine and is well positioned to take advantage of the robust demand outlook and pricing forecasts for lithium”. He also welcomed Steve Kessler’s involvement, given his extensive experience of developing mining projects as well as management of public companies.

 

 

VSA Capital is acting as financial adviser and broker to European Lithium. Private investors will also be given the opportunity to participate in the IPO via the PrimaryBid platform.

 

PrimaryBid