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DJ EANS-Adhoc: European Lithium Limited / DJ European Lithium Limited Facility Drawdown and Board Changes

  Disclosed inside information pursuant to article 17 Market Abuse Regulation 
  (MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution. 
  The issuer is responsible for the content of this announcement. 
Capital Measures 
The Board of European Lithium Limited (ASX: EUR, FRA: PF8, VSE: ELI, NEX: EUR) 
(the Company) advises that it has agreed to drawdown a further AUD$2m from its 
existing finance facility with Winance Investment LLC (Winance) (Finance 
The terms of the Finance Facility were first announced to ASX on 31 July 2019 
and the details were set out in the Company's 2019 notice of annual general 
meeting. There have not been any material changes to the terms of the Finance 
Funds received under the drawdown will be used to progress the Company's 
definitive feasibility study on its Wolfsberg lithium project (anticipated to be 
$1,565,000 in the forthcoming quarter) and for general working capital 
(anticipated to be $435,000 in the forthcoming quarter). The Company intends to 
repay notes issued under the drawdown through either conversion and/or further 
equity and/or debt raisings. 
The drawdown is independent of debt funding introduced by H120 AG (in 
corporation) late last year (refer ASX announcement 30 December 2019). The 
Company has yet to draw on the H120 AG loan as outstanding security issues 
relating to the loan require finalisation. We have been informed that a legal 
advisor in Australia has been appointed to complete the security agreement, and 
that it is intended that drawdown will be due within the next months. 
Commenting on the drawdown, Waqas Ibrahim, CFO of Winance, said "Winance's 
commitment towards European Lithium and belief in the Wolfsberg project has been 
substantiated by the independent analysis and studies conducted recently. 
Winance is entirely satisfied in the development of the project and adept 
strategies implemented by management. Winance has decided to extend our support 
to European Lithium and provided reasonable assurance to the management that 
Winance is still holding the majority of the shares resulting from the 
conversion of the first tranche." 
The drawdown is occurring by way of issue of 2,000 convertible notes to Winance. 
The notes convert to fully paid ordinary shares using a price determined by 
reference to the Company's then prevailing market price, with a floor price of 
$0.055 per share (subject to adjustment in the event of a capital restructure). 
As a result the maximum number of shares that may be issued on conversion of the 
notes is 36,363,636 shares. 
The issue is made using the Company's existing capacity under Listing Rule 7.1 
and without shareholder approval. To facilitate the drawdown and prior to 
agreeing it, the Company and H120 AG varied the agreement between them 
(announced 30 December 2019) by relieving the Company of its obligation to issue 
2 million options ($0.10 expiring 30 June 2020) and 30 million options ($0.15 
expiring 30 December 2020). 
Board Changes 
The Company is pleased to advise that Mr Tim Turner is appointed as a Non- 
Executive Director of the Company to commence on 4 March 2020. 
Mr Turner is the senior partner of accounting and advisory Firm, HTG Partners. 
Mr Turner heads the audit and assurance division and is responsible for the 
issue of audit opinions for self-managed superannuation funds through to full 
reporting entities. He also has in excess of 30 years' experience in business 
development, structuring and general business consultancy. 
Mr Turner has a Bachelor of Business Degree (Accounting), is a Registered 
Company, SMSF and Organisation Auditor, and a Chartered Tax Advisor. 
Mr Turner also sits on the Board of Cape Lambert Resources Limited (ASX: CFE). 
A further announcement containing the relevant disclosures under Appendix 1, 
Table A, paragraph 5.1.2 of the NEX Exchange Growth Market Rules for Issuers 
will be made in due course. 
Mr Stefan Müller has resigned and the Board would like to take this opportunity 
to thank Stefan for his service to the Company since his appointment. 
On the board changes, Tony Sage, Chairman, commented "We're extremely pleased to 
have Tim join us and look forward to welcoming him to our board. Tim has many 
years' experience on listed company boards and has strong industry knowledge." 
"I would like to express my gratitude to Stefan for his work and commitment to 
the Company, particularly in respect to the Company's exposure in the German and 
Austrian markets." 
This announcement has been authorised for release by Mr Tony Sage, European 
Lithiums Non-Executive Chairman. 
The full ASX announcement can be seen at: 
Tony Sage 
Non-Executive Chairman 
About Winance 
Founded by Cristina Nine, Winance is an independent global firm specialized in 
corporate financing. Creative and dedicated, we focus on small and mid-sized 
listed companies to help them secure funding needed for their growth. Winance 
sees itself as a non-invasive and passive investor , acting in the best interest 
of its portfolio companies and their shareholders. We are offering the 
possibility to renew contractual arrangements at our client's request in an easy 
and uncomplicated manner. 
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 
Winance worked on the European Lithium transaction with Kapital Global, Kapital 
Global is Winance's exclusive and strategic partner for Australia, collectively 
we focus on ASX listed and private opportunities in other geographies. 
Kapital Global is an advisory firm based in the UAE . Lead by Kapil Singh, 
Kapital Global focuses on markets in MENA, Western Europe, Australia, North & 
South America. 
Reinstatement to Official Quotation 
The suspension of trading in the securities of European Lithium Limited ('EUR') 
will be lifted immediately, following the release by EUR of an announcement 
regarding a funding update and board changes. 
- END - 
Further inquiry note: 
end of announcement                         euro adhoc 

(END) Dow Jones Newswires

March 05, 2020 08:46 ET (13:46 GMT)