REG - European Lithium Ltd - Quarterly Update

European LithiumAnnouncement

31/10/2019 09:25

RNS Number : 7740R
European Lithium Limited
31 October 2019
 


European Lithium Ltd
("European Lithium", "EUR" or "the Company")
QUARTERLY ACTIVITIES REPORT AND APPENDIX 5B
FOR THE QUARTER ENDING 30 SEPTEMBER 2019
The Board of European Lithium Limited (ASX: EUR, FRA: PF8, VSE: ELI, NEX: EUR) (the Company) is pleased to present its activities report and Appendix 5B for the three months ending 30 September 2019. The ASX announcement can be seen at: https://www.asx.com.au/asx/share-price-research/company/EUR
SUMMARY OF KEY UPDATES
·     Dorfner/Anzaplan continued metallurgical test work and pilot processing expected to be completed in Q4 2019
·     Summer drilling program has been completed. Core logging and assay testing on progress to convert JORC resource Inferred into Measured and Indicated category and upgrade resources to 10.98mt
·     Multiple pegmatite intersections in shallow drill holes of phase 1; intersections widths up to:
o  P18-13 - 2.19 to 4.1m @ 1.5% Li2O
o  P18-22 - 0.8 to 1.17 m @ 0.7% Li2O
o  P18-26 - 0.8 to 2.0m @1.0% Li2O
o  P18-28 - 2.05 m @1.5% Li2O
 
CORPORATE MATTERS
Placement
On 10 May 2019, the Company announced that it would be undertaking a placement, mainly to European based sophisticated investors, at an issue price of $0.09 per share to raise proceeds of up to €1.5million (before expenses) (Placement).
During the quarter, the Company issued 5.3m shares to raise cash proceeds of $477,000 (before expenses).
Magna Financing Facility
As previously announced, the Company established a A$10m finance facility with MEF I, L.P. (Magna) of which A$2.5m (1,840,500 convertible notes) was drawn down on 7 September 2018.
During the quarter, the Company established a new finance facility with Winance Investment LLC replacing the facility with Magna.  
On 13 September 2019, Magna agreed to extend the maturity date of the convertible notes on issue from 7 September 2019 to 30 November 2019.  In consideration for this extension, the Company issued Magna 1,000,000 fully paid ordinary shares on 13 September 2019.
During the quarter, Magna converted 150,000 notes and redeemed 434,782 notes (each with a face value of US$1.10).  As at 30 September 2019, Magna had 103,260 convertible notes remaining.
Winance Financing Facility
On 31 July 2019, the Company announced that it had secured an A$10m finance facility with Winance Investment LLC (Winance) to repay the residual amount owing to Magna, to fast-track the completion of a DFS at the Company's Wolfsberg Lithium Project in Austria and for general working capital purposes.
An initial amount of A$2.0m (2,000 notes) was drawn down on 20 September 2019 and a further A$8.0m is available in tranche of A$1.0m each upon full conversion of the notes from the previous drawdown, subject to a cooling off period.
Full terms and conditions of the convertible securities are included in the announcement released on 31 July 2019.
During the quarter, Winance converted 160 notes.  As at 30 September 2019, Winance had 1,840 convertible notes remaining.
Capital Movements
During the quarter, the Company issued the following securities:
§ 11 July 2019 - 2,000,000 shares issued pursuant to the Placement and 983,548 shares issued to Magna upon the conversion 50,000 convertible notes
§ 31 July 2019 - 995,223 shares issued to Magna upon the conversion of 50,000 convertible notes
§ 16 August 2019 - 1,016,411 shares issued to Magna upon the conversion of 50,000 convertible notes
§ 13 September 2019 - 1,000,000 shares issued to Magna as consideration for the extension of repayment date of the convertible notes
§ 25 September 2019 - 285,714 shares issued to Winance upon the conversion of 20 convertible notes
§ 30 September 2019 - 3,300,000 shares issued pursuant to the Placement and 1,999,999 shares issued to Winance upon the conversion of 140 convertible notes
Appendix 5B Quarterly Report and Statement of Cash Flows
The ASX Appendix 5B quarterly report is attached to and lodged with this report.  The Company's Appendix 5B Quarterly Report covers the 3-month period from 1 July 2019 to 30 September 2019.  
 
EXPLORATION AND DEVELOPMENT ACTIVITIES
Wolfsberg Lithium Project
Drilling
Drill core samples have been assayed at ALS laboratory in Dublin, Ireland where crushing, pulp and Li2O analysis was completed. The Company expects final results from phase 1 drilling in Q4, 2019.
Five shallow drill holes of phase 1 with a maximum depth of 290.0 m were completed in Zone 1 during Q3 2019. All five drill holes show multiple pegmatite intersections. Three drill holes contain pegmatite intersections with a true thickness up to 2 m. The phase 1 drillings confirm the suspected extension of pegmatite veins with depth (see Sections).
 
http://www.rns-pdf.londonstockexchange.com/rns/7740R_1-2019-10-31.pdf
Figure 1: Plan view of Lithium deposit Wolfsberg - area of investigation with drill holes of Phases 1 and 2
The drill hole collar positions and properties are shown in Table 1.
http://www.rns-pdf.londonstockexchange.com/rns/7740R_1-2019-10-31.pdf
 
Table 1: Drill hole collar positions and properties of phase 1 drilling
In total, 111 samples were submitted to ALS Global in Ireland for analyses. Of those 5 were blanks, 6 were certified reference material (standards), and 21 were duplicates. The strip logs of all five drill holes are presented in Appendix A with sample interval grades shown in Appendix B. Table 2 shows all intersections with a measured thickness of 0.3 m and above including calculated true thickness. All Sections for drill holes P18-13, P18-22 and P18-26 are shown in Figures 2-4.
http://www.rns-pdf.londonstockexchange.com/rns/7740R_1-2019-10-31.pdf
 
Figure 2: Section for drill hole P18-13
Drill hole P18-13 intercepted several pegmatite veins with most remarkable one at 216.1m having 4.1m true thickness with more than 1.5% Li2O composited grade.
http://www.rns-pdf.londonstockexchange.com/rns/7740R_1-2019-10-31.pdf
 
Figure 3: Section for drill hole P18-22
Drill hole P18-22 intercepted three major pegmatites veins ranging from 0.85 to 1.17m of true thickness with lithium grade up to 0.7 % Li2O.
http://www.rns-pdf.londonstockexchange.com/rns/7740R_1-2019-10-31.pdf
 
Figure 4: Section for drill hole P18-26
Drill hole P18-26 intercepted four pegmatites with true thickness ranging from 0.81m to over 2m with lithium up to 1% Li2O.
Drill holes P18-13, P18-22 and P18-26 were located between deep drilling undertaken in 2017 and historical (MINEREX) drilling in order to assist in the conversion of inferred resources (2017) into indicated.
Drill holes P18-28 and P18-29 were exploration drill holes, and they are projected to confirm continuity of the pegmatite vein toward the west where the previous mapping identified outcropping pegmatites at the area. Although P18-29 intercepted relative thin spodumene-bearing pegmatite vein, the results proved that the pegmatite veins remain open toward that area. Drill hole P18-28 is located in the area between established inferred resources (2017) and P18-29. This drill hole confirms continuity of pegmatites veins toward the west. Drill hole P18-28 intercepted at 82.7m 2.05m of pegmatite containing more than 1.5 % Li2O.




Drill Hole ID


Pegmatite From (m)


Pegmatite To (m)


Measured Thickness (m)


Measured Dip Angle (°)


True Thickness (m)




P18-13


151.36


152.10


0.74


45


0.52




P18-13


201.20


202.39


1.19


45


0.84




P18-13


216.10


219.20


3.10


45


2.19




P18-13


219.80


222.50


2.70


45


1.91




P18-13


254.05


254.35


0.30


40


0.23




P18-13


270.20


270.80


0.60


35


0.49




P18-22


134.10


135.30


1.20


45


0.85




P18-22


192.00


193.25


1.25


30


1.08




P18-22


200.50


201.75


1.25


30


1.08




P18-22


203.70


204.10


0.40


20


0.38




P18-22


252.30


253.60


1.30


55


0.75




P18-26


152.55


153.36


0.81


45


0.57




P18-26


161.85


162.34


0.49


50


0.31




P18-26


163.36


163.76


0.40


50


0.26




P18-26


164.50


167.75


3.25


45


2.30




P18-26


201.20


203.43


2.23


50


1.43




P18-26


239.40


240.00


0.60


40


0.46




P18-28


55.75


56.50


0.75


15


0.72




P18-28


57.70


58.10


0.40


25


0.36




P18-28


82.70


85.20


2.50


35


2.05




P18-29


32.82


33.15


0.33


20


0.31




P18-29


101.00


101.40


0.40


30


0.35




P18-29


226.57


227.03


0.46


20


0.43




Table 2: Pegmatite intersection widths and calculated true thickness
 




Sample To    (m)


Sample Thickness (m)


Sample Description


Li%


Li2O% (calculated)


MgO%


Fe2O3%


SiO2%


Sn ppm


Rb ppm


Cs ppm


Be ppm


Na2O %




134.1


0.5


Hanging wall - Mica schist


0.088


0.189


2.17


7.32


59.2


50


604


78


8


1.3




135.3


1.2


MHP


0.262


0.564


0.04


1.18


75.5


171


598


17


127


3.8




135.8


0.5


Foot wall - Mica schist


0.062


0.133


2.04


6.67


60.8


30


389


57


7


2




192


0.5


Hanging wall - Mica schist


0.086


0.185


1.95


6.9


64.5


14


245


33


4


1.6




193.25


1.25


MHP


0.323


0.695


0.08


1.37


72.9


179


819


27


160


3.3




193.75


0.5


Foot wall - Mica schist


0.069


0.149


1.87


6.43


65.6


8


222


29


4


1.9




200.5


0.5


Hanging wall - Mica schist


0.075


0.161


2.3


8.46


57.7


41


369


51


9


1.6




201.75


1.25


MHP


0.27


0.581


0.04


0.84


75


247


688


20


142


5




202.25


0.5


Foot wall - Mica schist


0.14


0.301


2.11


7.53


60.2


35


422


70


9


1.2




203.3


1.05


Mica schist


0.1


0.215


1.98


7.04


60


18


287


63


6


1.5




203.7


0.5


Hanging wall - Mica schist


0.096


0.207


2.23


7.55


58.6


33


590


82


18


1.7




204.1


0.4


MHP


0.351


0.756


0.02


0.93


75.9


199


654


10


137


3.8




204.6


0.5


Foot wall - Mica schist


0.066


0.142


1.97


6.72


62.4


20


307


44


5


1.8




235.8


0.95


Mica schist


0.013


0.028


1.35


4.64


73.1


5


110


6


3


1.7




236.8


1


Mica schist


0.016


0.034


2.12


7.51


62.6


6


159


8


4


1.6




237.6


0.8


Mica schist


0.011


0.024


1.25


4.51


74.6


3


109


6


3


1.8




238.6


1


Mica schist


0.012


0.026


1.52


5.55


69.5


4


129


7


3


1.8




252.3


0.5


Hanging wall - Mica schist


0.079


0.17


2.09


7.02


62.7


17


371


81


7


1.8




253.6


1.3


MHP


0.393


0.846


0.16


1.08


73.5


74


505


16


119


3.7




254.1


0.5


Foot wall - Mica schist


0.065


0.14


1.57


5.28


68.5


21


296


65


10


2.3




254.9


0.8


Mica schist


0.049


0.105


1.6


5.79


66.3


45


304


60


27


2.1




114.8


0.7


Aplite Vein


0.066


0.142


0.94


3.47


71.4


146


566


87


89


3.1




152.55


0.5


Hanging wall - Mica schist


0.08


0.172


2.07


7.22


60.7


14


316


33


6


1.5




153.36


0.81


MHP


0.32


0.689


0.07


0.98


74.2


94


695


16


135


3.5




153.86


0.5


Foot wall - Mica schist


0.074


0.159


2.33


8.08


57.7


10


268


32


6


2.5




161.85


0.5


Hanging wall - Mica schist


0.057


0.123


1.59


4.78


70.3


64


506


58


12


1.2




162.34


0.49


MHP


0.483


1.04


0.07


0.85


74.9


311


353


10


109


4.2




163.36


1.02


Mica schist


0.111


0.239


2.3


8.02


57


44


491


96


10


1.9




163.76


0.4


MHP


0.243


0.523


0.08


1.09


75


162


556


10


124


4.1




164.26


0.5


Foot wall - Mica schist


0.059


0.127


1.86


6.17


63.8


46


366


53


10


1.3




201.2


0.5


Hanging wall - Mica schist


0.061


0.131


1.72


6.23


66


19


313


49


6


1.7




202


0.8


MHP


0.278


0.599


0.15


1.06


75.7


121


487


20


152


4.6




202.9


0.73


MHP


0.189


0.407


0.61


2.7


80


45


348


38


72


2




203.43


0.53


MHP


0.362


0.779


0.08


1.04


76.2


74


364


13


136


4




203.93


0.5


Foot wall - Mica schist


0.122


0.263


1.98


6.8


63.3


26


444


86


10


1.8




239.4


0.5


Mica schist


0.034


0.073


1.7


5.42


67.5


15


369


25


6


2




240


0.6


Aplite Vein


0.008


0.017


0.13


0.9


74.1


85


416


5


146


4.1




240.5


0.5


Mica schist


0.022


0.047


1.01


3.49


78.6


34


389


16


11


0.8




33.68


0.86


MHP


0.481


1.036


0.04


0.84


75


366


654


18


147


3.6




85.64


0.5


Mica schist


0.011


0.024


1.71


5.45


68.4


6


129


7


4


1.7




86.6


0.96


Aplite Vein


0.005


0.011


0.39


1.6


65


5


35


2


7


8.9




87.1


0.5


Mica schist


0.014


0.03


2.1


6.75


61.2


8


142


10


4


2.3




101.4


0.4


MHP


0.183


0.394


0.37


1.65


74.5


188


610


26


135


3.6




227.03


0.46


Aplite Vein


<0.005


<0.01


0.12


1.35


75.1


34


277


3


20


3.9




151.36


0.5


Hanging wall - Mica schist


0.063


0.136


2.05


7.25


61.3


58


454


141


9


1.7




152.1


0.74


MHP


0.283


0.609


0.08


1.04


72.6


162


1035


41


149


4




152.6


0.5


Foot wall - Mica schist


0.047


0.101


1.29


4.74


65.5


154


954


135


70


2.1




201.2


0.5


Hanging wall - Mica schist


0.062


0.133


2.1


6.85


62.6


24


417


31


7


1.7




201.8


0.6


MHP


0.434


0.934


0.07


1.03


73.9


405


505


14


140


3.1




202.05


0.25


Mica schist


0.079


0.17


1.76


5.93


64.7


110


710


95


19


2.7




202.39


0.34


MHP


0.038


0.082


0.41


2.02


71.4


164


442


18


136


3.5




202.89


0.5


Foot wall - Mica schist


0.063


0.136


2.05


6.73


61.6


79


385


29


7


1.5




216.1


0.5


Hanging wall - Mica schist


0.056


0.121


1.67


5.23


67.1


115


783


60


30


0.7




217.1


1


MHP


0.461


0.993


0.02


0.75


75.3


151


941


30


146


3.4




218.1


1


MHP


0.846


1.821


0.01


0.93


76.9


251


867


35


156


3.2




219.2


1.1


MHP


0.776


1.671


0.11


1.11


76


137


913


43


173


2.9




219.8


0.6


Mica schist


0.168


0.362


1.95


6.71


62.6


66


1225


313


15


1.9




220.8


1


MHP


0.749


1.613


0.03


1.03


75.6


108


857


36


178


3.2




221.8


1


MHP


0.686


1.477


0.02


0.93


74.3


93


956


33


180


3.3




222.5


0.7


MHP


0.617


1.328


0.03


1


75.1


64


684


20


174


3.4




223


0.5


Foot wall - Mica schist


0.053


0.114


1.35


4.47


67.4


60


625


59


50


1.3




254.2


0.8


MHP


0.138


0.297


1.13


4.15


66.3


67


555


55


79


2.5




255


0.8


Mica schist


0.066


0.142


1.22


4.43


69.5


51


484


65


55


2.7




255.85


0.85


Aplite Vein


0.048


0.103


1.92


6.37


62.9


34


315


65


7


1.8




270.2


0.5


Hanging wall - Mica schist


0.057


0.123


1.89


6.71


63.5


27


277


44


7


1.9




270.8


0.6


MHP


0.461


0.993


0.1


1.37


73.5


57


448


11


189


3.6




271.3


0.5


Foot wall - Mica schist


0.055


0.118


1.83


6.44


62.7


58


462


56


15


1.3




55.75


0.5


Hanging wall - Mica schist


0.061


0.131


1.32


4.8


71.8


64


556


89


27


2




56.5


0.75


MHP


0.48


1.033


0.06


0.89


75.2


641


912


32


140


4.1




57.7


1.2


Mica schist


0.094


0.202


1.58


5.57


70.3


34


398


105


14


2




58.1


0.4


MHP


0.238


0.512


0.21


1.47


73.2


187


594


25


163


3.8




58.6


0.5


Foot wall - Mica schist


0.072


0.155


2.34


8.19


60.8


80


415


95


14


2.6




82.7


0.5


Hanging wall - Mica schist


0.105


0.226


1.95


6.88


62.1


45


313


75


14


1.9




83.55


0.85


MHP


0.727


1.565


0.01


1.33


78.5


296


629


24


127


3.2




84.4


0.85


MHP


0.827


1.781


<0.01


0.8


75.3


257


851


34


131


3.5




85.2


0.8


MHP


0.609


1.311


0.01


1.23


75.3


214


766


26


149


4.1




85.7


0.5


Foot wall - Mica schist


0.069


0.149


1.9


6.65


62.3


76


452


89


25


1.6




48.55


0.4


Aplite Vein


0.06


0.136


2


6.9


63.4


37


355


42


9


1.8




49.2


0.65


Aplite Vein


0.08


0.164


1.15


4.26


67.6


217


591


41


81


2.6




Table 3: Sampling Intervals and grades
Applications for additional deep holes (>300m depth, phase 2) is under assessment with the relevant authorities during the quarter. The public hearing that is a compulsory part of the approval process for drill holes at depth >300m has been scheduled by the mining authority on the 30 October 2019.
Definitive Feasibility Study (DFS)
Results from Phase 1 of the summer drilling program (shallow holes <300m depth in Zone 1) are being assessed for eligibility to convert the JORC resource from Inferred into Measured and Indicated category and upgrade resources to 10.98mt. This will form the basis to convert the Measured and Indicated resources into JORC reserves during the DFS mine planning and scheduling. The Zone 1 drilling programme to increase the Measured and Indicated Resource allows the DFS to be undertaken at the envisaged higher mining rate of max. 800,000tpa.
SRK Consulting (SRK) continued to work on the optimized mine design and increased declaration of mineral reserves, based on the PFS and current drilling program results when the data become available.
During the 3rd quarter, Dorfner/Anzaplan carried out significant metallurgical test work to assess and optimize the process lines, flowsheets and layouts. This testing is to ensure a high-quality final product (Lithium Hydroxide) is produced using the most efficient and competitive metallurgical processes from the beginning of the production cycle.
DRA Global has independently assessed and reviewed the metallurgical test work to complete the research in a timely manner and attended to all work stages at the testing facility in Hirschau, Germany.
Hydrogeology
The Company continues with hydrogeology monitoring program on a weekly, monthly and quarterly time frame:
·      Weekly monitoring includes measuring the water level at the surface and underground sites,
·      The monthly monitoring program includes sampling and analysing defined chemical and physical parameters,
·      The quarterly monitoring program includes water sampling and analysing water from previously defined field sites and analyses at certified Austrian lab in Austria. The water samples are analysed according to the Austrian state requirements for drinking water.
All hydrogeological data continues to be stored and secured into the Company's database.
The preparation work by SRK, and the geological consultant, GEO Unterweissacher, continues to ensure in-hole hydrogeological test work has been completed appropriately and can continue in future.
Environmental
No environmental work has been carried out in Q3/2019.
Monitoring of water flows and quality from the mine have continued.
Product Marketing  
The strategy for the Company remains unchanged and focuses on the supply of lithium hydroxide to the nascent lithium battery plants of Europe. The Company is in discussion with a number of industry players regarding future off-take contracts and good progress has already been made in the advanced discussions with potential off-take partners.
Horizon 2020
As reported in Q1 2019, the Company's 100% owned subsidiary ECM Lithium AT GmbH (ECM) has lodged contribution papers to participate in the European Union funded Horizon 2020 - GREENPEG programme.  The application process continues with the relevant authorities - next level documentation is expected to be lodged in Q4/2019.
 
Tony Sage
Non-Executive Chairman
 
 
Competent Person's Statement
The information in this announcement pertaining to the Wolfsberg Lithium Project, and to which this statement is attached, relates to Project Development and Metallurgical  Studies and is based on and fairly represents information and supporting documentation provided by the Company and its Consultants and summarized by Dietrich Wanke who is a Qualified Person and is a Member of the Australian Institution of Mining and Metallurgy (AusIMM) since  2006 with about 30 years' experience in the mining and resource development industry. Dietrich Wanke has sufficient experience, as to qualify as a Competent Person as defined in the 2012 edition of the "Australian Code for Reporting of Mineral Resources and Ore reserves". Dietrich Wanke consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The company is reporting progress on project development and metallurgical results under the 2012 edition of the Australasian Code for the Reporting of Results, Minerals Resources and Ore reserves (JORC code 2012).
Tenement Status
The mining tenements held at the end of the quarter, acquired and disposed of during the quarter and their location:




Tenement reference


Location


Acquired interest during the quarter


Disposed interest during the quarter


Interest at the end of the quarter




104/96


Wolfsberg Project, Austria


-


-


100%




105/96


Wolfsberg Project, Austria


-


-


100%




106/96


Wolfsberg Project, Austria


-


-


100%




107/96


Wolfsberg Project, Austria


-


-


100%




108/96


Wolfsberg Project, Austria


-


-


100%




109/96


Wolfsberg Project, Austria


-


-


100%




110/96


Wolfsberg Project, Austria


-


-


100%




111/96


Wolfsberg Project, Austria


-


-


100%




112/96


Wolfsberg Project, Austria


-


-


100%




113/96


Wolfsberg Project, Austria


-


-


100%




114/96


Wolfsberg Project, Austria


-


-


100%




115/96


Wolfsberg Project, Austria


-


-


100%




116/96


Wolfsberg Project, Austria


-


-


100%




117/96


Wolfsberg Project, Austria


-


-


100%




118/96


Wolfsberg Project, Austria


-


-


100%




119/96


Wolfsberg Project, Austria


-


-


100%




120/96


Wolfsberg Project, Austria


-


-


100%




121/96


Wolfsberg Project, Austria


-


-


100%




122/96


Wolfsberg Project, Austria


-


-


100%




123/96


Wolfsberg Project, Austria


-


-


100%




124/96


Wolfsberg Project, Austria


-


-


100%




125/96


Wolfsberg Project, Austria


-


-


100%




370/11(611/11)


Wolfsberg Project, Austria


-


-


100%




371/11(612/11)


Wolfsberg Project, Austria


-


-


100%




372/11(613/11)


Wolfsberg Project, Austria


-


-


100%




373/11(614/11)


Wolfsberg Project, Austria


-


-


100%




374/11(615/11)


Wolfsberg Project, Austria


-


-


100%




375/11(616/11)


Wolfsberg Project, Austria


-


-


100%




378/11(619/11)


Wolfsberg Project, Austria


-


-


100%




379/11(620/11)


Wolfsberg Project, Austria


-


-


100%




380/11(621/11)


Wolfsberg Project, Austria


-


-


100%




381/11(622/11)


Wolfsberg Project, Austria


-


-


100%




382/11(623/11)


Wolfsberg Project, Austria


-


-


100%




383/11(624/11)


Wolfsberg Project, Austria


-


-


100%




384/11(625/11)


Wolfsberg Project, Austria


-


-


100%




386/11(627/11)


Wolfsberg Project, Austria


-


-


100%




387/11(628/11)


Wolfsberg Project, Austria


-


-


100%




388/11(629/11)


Wolfsberg Project, Austria


-


-


100%




389/11(630/11)


Wolfsberg Project, Austria


-


-


100%




390/11(631/11)


Wolfsberg Project, Austria


-


-


100%




391/11(632/11)


Wolfsberg Project, Austria


-


-


100%




392/11(633/11)


Wolfsberg Project, Austria


-


-


100%




394/11(636/11)


Wolfsberg Project, Austria


-


-


100%




395/11(637/11)


Wolfsberg Project, Austria


-


-


100%




396/11(638/11)


Wolfsberg Project, Austria


-


-


100%




397/11(639/11)


Wolfsberg Project, Austria


-


-


100%




398/11(640/11)


Wolfsberg Project, Austria


-


-


100%




400/11(645/11)


Wolfsberg Project, Austria


-


-


100%




401/11(646/11)


Wolfsberg Project, Austria


-


-


100%




402/11(647/11)


Wolfsberg Project, Austria


-


-


100%




403/11(648/11)


Wolfsberg Project, Austria


-


-


100%




408/11(648/11)


Wolfsberg Project, Austria


-


-


100%




409/11(641/11)


Wolfsberg Project, Austria


-


-


100%




412/11(649/11)


Wolfsberg Project, Austria


-


-


100%




Andreas 1


Wolfsberg Project, Austria


-


-


100%




Andreas 2


Wolfsberg Project, Austria


-


-


100%




Andreas 3


Wolfsberg Project, Austria


-


-


100%




Andreas 4


Wolfsberg Project, Austria


-


-


100%




Andreas 5


Wolfsberg Project, Austria


-


-


100%




Andreas 6


Wolfsberg Project, Austria


-


-


100%




Andreas 7


Wolfsberg Project, Austria


-


-


100%




Andreas 8


Wolfsberg Project, Austria


-


-


100%




Andreas 9


Wolfsberg Project, Austria


-


-


100%




Andreas 10


Wolfsberg Project, Austria


-


-


100%




Andreas 11


Wolfsberg Project, Austria


-


-


100%




 
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
 




Name of entity




EUROPEAN LITHIUM LIMITED




ABN


 


Quarter ended ("current quarter")




45 141 450 624


 


30 September 2019




 




Consolidated statement of cash flows


Current quarter $A'000


Year to date
(3 months)

$A'000






1.


Cash flows from operating activities


-


-




1.1


Receipts from customers




1.2


Payments for


(717)


(717)




 


(a)    exploration & evaluation




 


(b)   development


-


-




 


(c)    production


-


-




 


(d)   staff costs


-


-




 


(e)   administration and corporate costs


(253)


(253)




1.3


Dividends received (see note 3)


-


-




1.4


Interest received


2


2




1.5


Interest and other costs of finance paid


-


-




1.6


Income taxes paid


-


-




1.7


Research and development refunds


-


-




1.8


Other (provide details if material)


-


-




 


      - Promotion and marketing related costs


(170)


(170)




 


      - Overseas listing fees


(19)


(19)




1.9


Net cash from / (used in) operating activities


(1,157)


(1,157)




 




2.


Cash flows from investing activities


-


-




2.1


Payments to acquire:




 


(a)    property, plant and equipment




 


(b)   tenements (see item 10)


-


-




 


(c)    investments


-


-




 


(d)   other non-current assets


-


-




2.2


Proceeds from the disposal of:


-


-




 


(a)    property, plant and equipment




 


(b)   tenements (see item 10)


-


-




 


(c)    investments


-


-




 


(d)   other non-current assets


-


-




2.3


Cash flows from loans to other entities


-


-




2.4


Dividends received (see note 3)


-


-




2.5


Other - Refund of costs


-


-




2.6


Net cash from / (used in) investing activities


-


-




 




3.


Cash flows from financing activities


477


477




3.1


Proceeds from issues of shares




3.2


Proceeds from issue of convertible notes


2,000


2,000




3.3


Proceeds from exercise of share options


-


-




3.4


Transaction costs related to issues of shares, convertible notes or options


(253)


(253)




3.5


Proceeds from borrowings


-


-




3.6


Repayment of borrowings


(812)


(812)




3.7


Transaction costs related to loans and borrowings


-


-




3.8


Dividends paid


-


-




3.9


Other (provide details if material)


-


-




3.10


Net cash from / (used in) financing activities


1,412


1,412




 




4.


Net increase / (decrease) in cash and cash equivalents for the period


1,200


1,200




4.1


Cash and cash equivalents at beginning of period




4.2


Net cash from / (used in) operating activities (item 1.9 above)


(1,157)


(1,157)




4.3


Net cash from / (used in) investing activities (item 2.6 above)


-


-




4.4


Net cash from / (used in) financing activities (item 3.10 above)


1,412


1,412




4.5


Effect of movement in exchange rates on cash held


3


3




4.6


Cash and cash equivalents at end of period


1,458


1,458



 
 
 
 
 



 




5.


Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts


Current quarter

$A'000


Previous quarter

$A'000




5.1


Bank balances


1,458


289




5.2


Call deposits


-


911




5.3


Bank overdrafts


-


-




5.4


Other (provide details)


-


-




5.5


Cash and cash equivalents at end of quarter (should equal item 4.6 above)


1,458


1,200




6.


Payments to directors of the entity and their associates


Current quarter

$A'000




6.1


Aggregate amount of payments to these parties included in item 1.2


59




6.2


Aggregate amount of cash flow from loans to these parties included in item 2.3


-




6.3


Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2




Director Fees paid to Directors (inclusive of GST)
 
 




 




7.


Payments to related entities of the entity and their associates


Current quarter

$A'000




7.1


Aggregate amount of payments to these parties included in item 1.2


175




7.2


Aggregate amount of cash flow from loans to these parties included in item 2.3


-




7.3


Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2




Payments included in item 7.1 are inclusive of GST and relate to payments to Director-related parties for office occupancy costs, capital raising fees, professional services and the reimbursement of business related travel and other expenses.
 




 




8.


Financing facilities available

Add notes as necessary for an understanding of the position


Total facility amount at quarter end

$A'000


Amount drawn at quarter end

$A'000




8.1


Loan facilities


-


-




8.2


Credit standby arrangements


-


-




8.3


Other (Magna convertible security)


10,000,000


2,000,000




8.4


Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.




The Company has established a convertible note facility with Winance Investment LLC.  Full terms and conditions of this facility are included in the ASX announcement dated 31 July 2019.
 




 




9.


Estimated cash outflows for next quarter


$A'000




9.1


Exploration and evaluation


(1,859)




9.2


Development


-




9.3


Production


-




9.4


Staff costs


-




9.5


Administration and corporate costs


(413)




9.6


Other - Loan repayment (Magna)


(115)




9.7


Total estimated cash outflows


(2,387)*




* This is an estimate of the total cash outflows of the Company for the next quarter and does not take into account any anticipated cash inflows. 




10.


Changes in tenements

(items 2.1(b) and 2.2(b) above)


Tenement reference and location


Nature of interest


Interest at beginning of quarter


Interest at end of quarter




10.1


Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced a


-


-


-


-




10.2


Interests in mining tenements and petroleum tenements acquired or increased


-


-


-


-




 
Notes
1.         The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2.         If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3.         Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
- END -
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 Wolfsberg Lithium Project located in Austria.
For further information please contact:




European Lithium Ltd


+61 861 819 792




Tony Sage


info@europeanlithium.com
 
 




NEX Corporate Adviser


+44 207 220 1666




James Joyce


 




James Sinclair-Ford


 




 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
NEXGCBDGLBXBGCB