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30.12.2019 – 01:03

European Lithium Limited

EANS-Adhoc: European Lithium Limited
EUR7.5 MILLION (A$12M) @ 5% per annum DEBT FUNDING AGREED

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  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.
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DEBT FUNDING & AUSTRIAN MINING AUTHORITY EXTENDS 11 MINING AND 54 EXPLORATION
LICENSES FOR THE WOLFSBERG PROJECT

Capital Measures
30.12.2019

West Leederville - SUMMARY OF KEY UPDATES

* Debt facility secured to raise funds of EUR7,500,000 (Approximately A$12m)


* 11 Mining licenses extended to December 2021


* 54 Exploration licenses extended to December 2021


The Board of European Lithium Limited (ASX: EUR, FRA: PF8, VSE: ELI, NEX: EUR)
(the Company) is pleased to announce that it has agreed a long-term debt
facility of EUR7,500,000 with a Swiss based sophisticated investor (Debt
Facility) introduced by Helvetican International AG (Helvetican).

The Debt Facility will allow the Company to complete the DFS at the Wolfsberg
Lithium Project in Austria and repay the residual amount owing under the
existing convertible note facility. The Company's Chairman has met with
Helvetican and the lender on two difference occasions in Zurich over the last 6
weeks as part of its due diligence on the Debt Facility.

The Debt Facility will replace the Company's existing A$10m convertible note
facility with Winance Investment LLC (Winance) (refer ASX announcement 31 July
2019). In relation to this facility, there is a total of 940 convertible notes
which remain outstanding from the 2,000 notes issued at the initial draw down of
A$2.0m by the Company in September 2019. The outstanding Winance notes will be
redeemed in full upon drawdown of the Debt Facility.

The key terms of the Debt Facility are set out in Annexure A to this
announcement.

Tony Sage, Chairman, commented "This is a significant milestone in the
development of the Wolfsberg project as it allows us to finalise the DFS without
further dilution to existing shareholders. We believe the repayment and
extinguishment of the existing convertible facility will greatly benefit all
shareholders by eliminating the issue of new shares and subsequent selling into
the market. EUR looks forward to a mutually beneficial and long-term
relationship with Helvetican International AG."

The Austrian Mining Authority has extended the 11 mining licenses and 54
exploration licenses the Company has over the Wolfsberg Lithium Project. The
decision is based on the huge effort the Company has demonstrated to the
Austrian Mining Authority in developing the Wolfsberg Lithium Project,
especially in the unique field of metallurgy to battery grade lithium hydroxide.
Tony Sage, Chairman, commented "This is yet another significant milestone for
the Company in development of the Project".

This announcement has been authorised for release to the ASX by the Board of the
Company.

Tony Sage Non-Executive Chairman


Annexure A

* The Debt Facility is for EUR7,500,000, with drawdown to occur as required
  The Lenders name is H120 AG, a Switzerland incorporated entity
* The Debt Facility is repayable in full on maturity being 2 years from drawdown
* Interest of 5.0% per annum is payable on a quarterly basis in arrears
* Helvetican to appoint a Board member to the Company on 1st February 2020
* The Debt Facility is secured against the Company's Wolfsberg Lithium Project
  in Austria
* The Company has agreed to issue Helvetican (or Nominee) 40,000,000 unlisted
  options with an exercise price of $0.10c each that can be exercised on or
  before 30th June 2020 and 30,000,000 unlisted options with an exercise price
  of $0.15c each which can be exercised within 12 months of signing the binding
  terms sheet.


About Helvetican
Helvetican International AG is a Swiss based corporate and financial advisory
firm. Further details can be found at www.helvetican.com.






Further inquiry note:
info@europeanlithium.com

end of announcement                         euro adhoc
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issuer:       European Lithium Limited
              Harrogate Street 32
              AU-WA6007 West Leederville
phone:        +61 8 6181 9792
FAX:          
mail:      ir@europeanlithium.com
WWW:       www.europeanlithium.com
ISIN:         AU000000EUR7
indexes:      
stockmarkets: Frankfurt, Wien
language:     English
 

Original content of: European Lithium Limited, transmitted by news aktuell