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Drill rig in operation. Source: European Lithium
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  • European Lithium (EUR) agrees to purchase Ukrainian company Petro Consulting from Millstone and Company Global
  • For the acquisition, European Lithium will issue Millstone $20 million worth of ordinary shares and 50 million performance shares
  • Petro is currently applying for special permits to extract and process lithium for two Ukraine lithium projects
  • Additionally, the parties have also signed a subscription agreement which will see Millstone subscribe to $20 million EUR shares
  • On the market this morning, European Lithium was down 3.70 per cent and is trading at 13 cents per share

European Lithium (EUR) has agreed to purchase Ukrainian company Petro Consulting from Millstone and Company Global.

For the acquisition, European Lithium will issue Millstone $20 million worth of ordinary shares and 50 million performance shares at $1 each.

The performance shares then convert to EUR’s then prevailing share price of up to around 526 million shares.

Petro is currently applying for special permits to extract and process lithium for two Ukraine lithium projects, Shevchenkivske and Dobra, which are considered under-explored by modern exploration methods.

Based on historical data, Shevchenkivske and Dobra have significant exploration targets.

Additionally, the parties have signed a subscription agreement which will see Millstone subscribe to $20 million EUR shares.

The subscription will be undertaken in four parts and see shares issued for 9.5 cents each.

Notably, the first tranche does not need shareholder approval and will be conducted immediately but the remaining three tranches will need the go-ahead from EUR shareholders.

Funds from the first two tranches will be spent on the definitive feasibility study on European Lithium’s Wolfsberg project, and funds from the third and fourth tranche will be spent on Petro’s Ukrainian projects.

If this is all completed, Millstone will have a 20 per cent interest in European Lithium.

However, the deal is subject to Petro being issued the relevant special permits, EUR shareholder approval and certain other conditions.

European Lithium is expecting the deal to be completed 12 months after signing.

Under the deal, Millstone will appoint a director to European Lithium once the first tranche is completed. Millstone has chosen to appoint Mykhailo Zhernov as its nominee Director.

Mr Zhernov has a track record of twenty years in the financial sector of Ukraine, CIS, Central and Eastern Europe.

On the market this morning, European Lithium was down 3.70 per cent and is trading at 13 cents per share at 10:31 am AEDT.

EUR by the numbers
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