European Lithium Ltd (ASX:EUR, OTCQB:EULIF) is approaching the finalisation of a merger transaction that would enable the company to list shares on the US NASDAQ market, a highly mobile market with a heavy focus on innovation and technology.
Late last year EUR announced it had entered into a business combination agreement with Sizzle Acquisition Corp, a publicly traded special purpose acquisition company (SPAC).
European Lithium agreed to combine its wholly owned Wolfsberg Lithium Project with Sizzle via a new lithium exploration and development company named 'Critical Metals Corp.', which is expected to be listed on NASDAQ under the symbol CRML.
Form F-4 Registration Statement
EUR has since filed a Form F-4 Registration Statement of Critical Metals Corp to the US Securities and Exchange Commission (SEC), as well as four amendments to the statement.
“The latest F-4 amendment was lodged on Monday, August 7,” European Lithium chair Tony Sage said.
“When declared effective by the SEC, the board of Sizzle will convene a shareholder meeting to approve the transaction. We will work to finalise the NASDAQ listing process shortly thereafter.”
The company said the transaction was progressing through the approval process and remained subject to SEC and Sizzle shareholder approval.
Upon successful completion of the transaction, EUR will be issued US$750 million worth of ordinary shares in CRML.
Wolfberg Project advances at pace
Apart from regulatory approvals, EUR has also made substantial progress at the Wolfsberg Project.
The company secured a mining licence, confirmed spodumene mined from the project is suitable for high-purity lithium applications and defined a mineral resource estimate of 12.88 million tonnes at 1% lithium.
European Lithium also produced evidence of the project’s economic viability with a definitive feasibility study (DFS) that demonstrated a post-tax net present value (NPV) of US$ 1.5 billion, secured offtake agreements with automotive giant BMW and entered a binding agreement to build a lithium hydroxide plant in partnership with Obeikan.
From here, EUR will work to:
- finalise funding for Wolfsberg infrastructure requirements;
- begin construction; and,
- undertake resource extension drilling in Zone 2 to increase mine life.