Australian miner European Lithium Ltd. has merged with Sizzle Acquisition Corp., a U.S. special purpose acquisition company, to launch Critical Metals Corp. – a lithium exploration and development company.
As part of the deal, European Lithium will sell its ownership interest in three Austrian subsidiaries, which together hold the Wolfsberg Lithium Project and an interest in the non-core Weinebene and Eastern Alps lithium projects.
Upon the closing of the transaction, which is anticipated to be in the first half of 2023, European Lithium will be issued US$750 million worth of ordinary shares in Critical Metals, which represents an approximate 80% ownership interest in the combined entity.
“Wolfsberg is poised to become the first major source of battery-grade lithium concentrate in Europe, the world’s leading EV market, capable of supporting the production of approximately 200,000 EVs per year,” said European Lithium Executive Chairman Tony Sage.
“The funds raised though this transaction will provide us with the resources anticipated to be required to advance construction and commissioning of Wolfsberg. With the capital raised, in addition to the increased access to the public capital markets by listing on NASDAQ by means of the business combination, we believe we will be able to achieve our commercial goals at Wolfsberg by 2025.”
The Wolfsberg Lithium Project comprises 54 exploration licences and 11 mining licences covering a total area of 11.33 kilometres. The project is located 270km southwest of Vienna, Austria.
Source: European Lithium