EANS-News European Lithium Limited / Draw on existing finance facility and board changes

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05.03.2020, 03:50  |  1087   |   |   
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distribution. The issuer is responsible for the content of this announcement.



West Leederville - 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 Facility).

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).
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