TIDMEUR
RNS Number : 9753N
European Lithium Limited
27 May 2020
27 May 2020
European Lithium Ltd
("European Lithium", "EUR" or "the Company")
EUROPEAN LITHIUM SECURES STRATEGIC ENGAGEMENT AGREEMENT WITH
GLOBAL EV SPECIALIST GROUP TALAXIS
Highlights
-- Strategic engagement with Talaxis, a global leader in EV
technology metals project development
-- Talaxis to support with completing the DFS for the Wolfsberg Lithium Project
-- European Lithium Board to be strengthened with the
appointment of Talaxis MD Daniel Mamdou-Blanco as a Strategic
Advisor. Mr Mamadou-Blanco is a highly experienced mining and
finance executive who has previously held senior executive
positions with Deutsche Bank, Goldman Sachs and Nomura
International.
-- Talaxis to provide services to European Lithium including
managing and establishing commercial relationships, contract
negotiations and strategic market research
European Lithium Limited (ASX:EUR, FRA:PF8, NEX:EUR, VSE:ELI)
("EUR" or the "Company") is pleased to announce that it has entered
into a strategic engagement agreement with Talaxis Limited
("Talaxis") which includes the appointment of Talaxis and Noble
Group Holdings Limited ("Noble Holdings") executive Daniel
Mamadou-Blanco as a strategic advisor to EUR. Talaxis, a
wholly-owned subsidiary of Noble Holdings, is a global leader in EV
technology metals project development. Talaxis invests and develops
projects that are related to nickel, cobalt, lithium, rare earths
and other metals and materials that are key to the energy
transition.
Tony Sage EUR Non-Executive Chairman commented: " Given the
unprecedented times we live in, it is a huge coup for EUR to have
secured the engagement with Talaxis and above all the vast
knowledge and experience of Daniel. The appointment will expedite
the DFS for the Company's Wolfsburg's lithium project as the world
starts to move out of the pandemic and into an EV future,
especially in Europe."
Daniel Mamadou-Blanco Managing Director and the Global Head of
Technology Metals and Materials at Noble Holdings commented: "We
are pleased to have secured a long term strategic engagement with
European Lithium. Having followed the Wolfsberg Lithium Project for
a number of years, we believe the asset is uniquely placed to drive
growth in the European battery industry given its strategic
location, metallurgically friendly lithium ore and expected
production timeline. Despite a challenging macro-economic
environment in light of COVID-19, we believe the industry's
long-term fundamentals remain resilient as the transition towards
electric vehicles and renewable energy continues to accelerate. We
are proud to be partnering with European Lithium to support the
energy transition and drive long-term growth."
Key Terms of Strategic Engagement
Key terms of the strategic engagement are as follows:
a) Talaxis will assist EUR in managing and establishing
commercial relationships and contract negotiations including:
i. Establishing, liaising and maintaining relationships with
strategic partners, such as debt and equity financiers, government
/ EU grant providers / financing programs, offtake partners,
logistics partners, and EPCM partners; and
ii. Management assistance with contract negotiations on key
transactions and continued support post transaction / relevant
agreement .
b) Talaxis will provide strategic market research and insight to
EUR covering the lithium industry, including (but not limited to)
beneficiation, processing and refining methods, product grades and
specifications, pricing metrics and methodology, competition
landscape, market supply and demand, environmental protection,
purchasing and storage activities and industry trends;
c) Talaxis' services will be provided by Noble Holdings
executive, Mr Daniel Mamadou-Blanco as a Strategic Advisor. Mr
Daniel Mamadou-Blanco is currently the Managing Director and the
Global Head of Technology Metals and Materials at Noble Holdings,
one of the world's largest EV technology commodities groups, who
has over 20 years of expertise in the financial services and
resource sectors in Asia;
d) Remuneration Terms:
i. Capital Introduction fees of 5% is payable on successful debt
or equity raising.
ii. Subject to ASX approval in accordance with LR 6.1 and
shareholder approval, the Company has agreed to grant Talaxis (or
its nominee) 36,000,000 performance rights in several tranches,
which may convert into fully paid ordinary shares of the Company
based on the vesting and conversion conditions set out below
occurring within 5 years:
-- 6,000,000 - on completion of full Definitive Feasibility
funding for the Wolfsberg Lithium Project;
-- 6,000,000 - On completion of project development funding for the Wolfsberg Lithium Project;
-- 6,000,000 - On completion of commercial production at the Wolfsberg Lithium Project;
-- 6,000,000 - If the volume-weighted average share price
("VWAP") of the Company's shares traded on the ASX or FRA equals or
exceeds A$0.10/share for 20 business days;
-- 6,000,000 - If the VWAP of the Company's shares traded on the
ASX or FRA equals or exceeds A$0.20/share for 20 business days;
and
-- 6,000,000 - If the VWAP of the Company's shares traded on the
ASX or FRA equals or exceeds A$0.30/share for 20 business days.
e) Both parties agree to a one year minimum engagement period on
a non-exclusive basis. Talaxis must act in the best interests of
EUR in providing services.
f) The agreement will continue until terminated. At the end of
the initial one year period, either party may terminate the
agreement by providing 30 days written notice to the other party.
In addition, either party may terminate the agreement in the event
of a material breach of the agreement.
g) The engagement letter is subject to EUR board approval. This
board approval was received on 25 May 2020.
The strategic engagement agreement was introduced and managed by
corporate advisory firm, Empire Capital Partners (Empire Capital).
The Company has executed a mandate with Empire Capital for the
provision of services (Mandate). Under the terms of the Mandate,
the Company has agreed to issue Empire Capital 2 million fully paid
ordinary shares (Mandate Shares) and 2 million unlisted options
with an exercise price of 5c expiring on 31 July 2022 (Mandate
Options). The Mandate Shares and Mandate Options are issued under
the Company's LR 7.1 capacity and without shareholder approval.
EUR is developing its Wolfsberg Lithium Project in Austria (100%
interest) where it aims to be the first local supplier of lithium
into an integrated European battery supply chain. In April 2018,
the Company completed its PFS
This announcement has been authorised for release to the ASX by
the Board of the Company.
Tony Sage
Non-Executive Chairman
European Lithium Limited
- END -
Visit the Company's website (www.europeanlithium.com) to find
out more about the advanced Wolfsberg Lithium Project located in
Austria.
For further information please contact:
European Lithium Ltd +61 861 819 792
Tony Sage ir@europeanlithium.com
NEX Corporate Adviser +44 207 220 1666
James Joyce
James Sinclair-Ford
Notes to editors:
Daniel Mamadou-Blanco biography
Mr Daniel Mamadou-Blanco is currently the Managing Director and
the Global Head of Technology Metals and Materials at Noble
Holdings, one of the world's largest EV Technology commodities
groups, with over 20 years of expertise in the financial services
sector in Asia.
From 1997 until 2014, Mr Mamadou-Blanco developed his
professional career at various investment banks, including at
Deutsche Bank in London, where he ran the fixed income derivatives
structuring desk for Spain and Portugal as Director in the Relative
Value Group.
In 1999, Mr Mamadou-Blanco joined Goldman Sachs as a Director in
the Corporate Coverage group within the FICC division in London.
Daniel re-joined the ranks of Deutsche Bank in Asia in 2003, where
he was appointed Managing Director and co-head of the Corporate
Markets and Treasury Solutions team, with the responsibility of
covering Asia-Pacific. In 2011, Daniel moved over to Nomura
Securities, as Managing Director and Head of the Corporate
Solutions and Financing Group for the Asia-Pacific region.
Daniel holds an MSc in Investment Banking and International
Securities from the University of Reading, and a Bachelor in
Marketing and Business Management from the Escuela Superior de
Gestion ESIC, Valencia.
About Talaxis
Talaxis is a wholly owned subsidiary of Noble Group Holdings
Limited, Asia's leading independent energy products and industrial
raw materials supply chain manager. It invests and participates in
the development of projects in the technology metals sector,
leveraging Noble's resources through access to logistics and supply
chain management, and assists with the design and structure of
project financing solutions. Talaxis prioritises ventures that
contribute to the decarbonization of the economy and that are
aligned with the United Nations Sustainable Development Goals.
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END
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