The Australian-based European Lithium (Perth), whose shares are listed on the Australian Stock Exchange, agreed to acquire Ukraine’s Petro-Consulting LLC (Kyiv), which is fighting for special permits for the production of two lithium deposits in Ukraine: Shevchenkivsky and the Dobry site.
“The condition for the acquisition is the issuance of appropriate special permits for the extraction and production of lithium to Petro-Consulting (in court, through public auctions or production sharing agreements), approval of the shareholders of European Lithium (as a result of which Millstone may acquire more than 20% of European Lithium) and some other conditions, with a final date of completion of 12 months from the date of signing,” the Australian company said.
According to the report, the total purchase price is AUD20 million in shares plus another AUD50 million in shares if certain conditions are met.
Following the completion of the acquisition of European Lithium, the main project of which today is the Wolfsberg lithium project in Carinthia, Austria, Lithium Project intends to conduct the first JORC mineral resource assessment based on verification work (double drilling).
“Considering the mutual synergy due to the merger of Ukrainian projects with the advanced lithium project Wolfsberg, Millstone (the owner of Petro-Consulting) is confident in issuing special permits to Petro-Consulting and financing further exploration work and feasibility studies of Ukrainian-based projects, Millstone agreed to invest AUD20 million in European Lithium, of which AUD2.5 million immediately, AUD2.5 million subject to shareholder approval (to be requested at the forthcoming AGM) and AUD15 million subject to completion of the Petro-Consulting acquisition,” the statement said.
It states that Millstone’s representative Mykhailo Zhernov will be appointed to the board of directors of European Lithium upon completion of the first tranche of the placement.
Petro-Consulting was registered in Darnytsky district of Kyiv in April 2010. The charter capital is UAH 340,210. The ultimate beneficiary of the company is resident of Donetsk Mykhailo Zhernov, the head of the company since September 2019 is Ihor Lukyanov.
