European Lithium Limited (ASX:EUR) has recently requested a trading halt of the company’s shares. The company has requested the halt in order to provide shareholders with an announcement of a major capital raising.
European Lithium is an emerging lithium producer and developer as it is currently focused on the development of the Wolfsberg Lithium Project located in Austria. The Wolfsberg Lithium Project has been granted several significant permits and has now reached the stage where a definitive offtake and construction finance agreement must be put in place.
The trading halt will remain in place until the earlier of the commencement of normal trading, or the earlier of the release of the announcement, or the ASX Guidance process has been completed. European Lithium’s shares were trading at $0.215 when the trading halt was announced.
The Wolfsberg Lithium Project has a total mineral resource of 19.45 million tonnes at 0.95% Li2O, with associated cobalt, nickel and scandium. The project is located in an area which has long been famed for supplying lithium to European consumers. Regulatory approval has been obtained for further works to continue at the project.
The company is focused on bringing the Wolfsberg Lithium Project to production with the goal of supplying the growing European lithium market. European Lithium is currently in discussions with European and Asian customers with regards to securing offtake agreements.
The trading halt requested by European Lithium is well timed, both to keep the board up to date with any releasing updates; and to give the shareholders a chance to prepare for any potential capital raising initiative.
It will be interesting to see how this systematic raise plays out for European Lithium and whether it will have a positive or negative short-term and long-term impact on the company’s share price. Keep an eye on the capital raising news this week as it will certainly be an interesting journey for European Lithium.