EANS-Adhoc: European Lithium Limited / SIGNS BINDING AGREEMENT FOR A$10m FUNDING FACILITY

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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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Capital Measures
31.07.2019

West Leederville - The Board of European Lithium Limited (ASX: EUR, FRA: PF8,
VSE: ELI, NEX: EUR) (the Company) is pleased to confirm that it has executed
binding documentation for an A$10m finance facility with Winance Investment LLC
(Winance or Investor) (Finance Facility).

The Winance Finance Facility replaces the Company's existing A$10m facility with
MEF I, L.P (Magna) (refer ASX announcement 7 September 2018). In relation to the
Magna facility, there is a total of 638,042 convertible notes which remain
outstanding from the 1,840,500 notes issued at the initial draw down of A$2.5m
by the Company in September 2018.

The Company continues to engage in dialogue with institutional parties and is
focused on engaging a strategic investor to alleviate, or minimise, the funds
the Company draws down under the Winance Finance Facility.

Any funds advanced under the Winance Finance Facility will be used to repay the
residual amount owing to Magna, to fast-track the completion of a DFS at the
Company's Wolfsberg Lithium Project in Austria and for general working capital
purposes.

The Finance Facility is by way of the issue of convertible securities in the
Company. An initial amount of A$2.0m is available for immediate drawdown, with
this to occur at the Company's election prior to 31 October 2019. Further
drawdowns of $1,000,000 each are available upon full conversion of the notes
from the previous drawdown, subject to a cooling off period.

Material terms and conditions are outlined in Annexure A.
Tony Sage, Chairman, commented "securing this additional funding provides the
Company flexibility and allows us to continue to negotiate with potential
strategic partners".

Cristina Nine, CEO of Winance, commented "this arrangement strengthens European
Lithium's long-term financial structure and secures their ongoing development
and expansion which will help both companies achieve its organizational goals.
This new investment round will enable European Lithium to further capitalize on
its position as a growing company in mining exploration and development across
Australia."

The initial $2.0 million tranche is made without shareholder approval, with the
conversion unconditional. EUR relies upon its existing capacity under Listing
Rule 7.1 to issue the initial notes.

Tony Sage
Non-Executive Chairman

Annexure A
* EUR will receive A$2.0m (before expenses) within 3 business days of electing
to draw down the funds.
* Further drawdowns of A$8m are at the Company's election available in tranches
of A$1m each upon full conversion of the notes from the previous drawdown,
subject to:
o a cooling off period calculated based on the value of the tranche and average
trading volumes during the preceding 60-day period; and
o prior approval by EUR's shareholders.
* There are no fees or penalties if no subsequent drawdowns are made.
* The convertible notes will be 100% of the par value A$1.00 each (Par Value).
* The convertible notes are, subject to prior shareholder approval where
required, convertible at any time by the Investor at 92% of the lowest closing
VWAP over ten (10) days prior to the conversion date, providing that the
conversion price shall not in any case be lower than A$0.055 (Floor Price).
* In the event the conversion price is less than the Floor Price at conversion,
the Company will issue the number of shares equal to the conversion amount
divided by the Floor Price with the shortfall amount (calculated based on the
conversion amount less the number of shares equal to 90% of the lowest closing
VWAP over ten (10) days prior to the conversion date) payable in cash.
* In the event the closing VWAP for any five (5) day period falls below 135% of
the Floor Price, the Investor, at their discretion, shall have the right to
decline further drawdowns. Drawdowns may resume if the VWAP remains over 135% of
the VWAP for 20 consecutive days
* The minimum conversion amount is A$20,000.
* The convertible notes bear no interest.
* The convertible notes have a maturity date of 36 months from the date of
issue.
* The convertible notes are unsecured.
* The Investor will receive a commitment fee of 3% of the investment amount at
the funding of each tranche payable in cash.
* Kapital Global Advisors Limited, the broker who facilitated the Finance
Facility, will receive a broker fee of 5% of the investment amount at the
funding of each tranche payable in cash.
* In the event of default, the Investor is entitled to issue a redemption notice
which requires the Company to repay the outstanding amount together with
interest at 10% per annum (accruing from issue to redemption).
* The Company will seek shareholder approval to issue shares in accordance with
the convertible note facility as required
* A fee of $100,000 is payable in the event the Company has not drawn down on
the Finance Facility by 31 October 2019 (unless the Investor is in default of
their obligations under the Facility).
* EUR gives warranties considered typical for a financing facility of this
nature.

About Winance

Founded by Cristina Nine, Winance is an independent global firm specialized in
corporate financing. Creative and dedicated, we focus on small and mid-sized
listed companies to help them secure funding needed for their growth. Winance
sees itself as a non-invasive and passive investor, acting in the best interest
of its portfolio companies and their shareholders. We are offering the
possibility to renew contractual arrangements at our client's request in an easy
and uncomplicated manner.
We bring significant resources and credibility and maintain a long-standing
commitment to our principal values of honesty, integrity, and loyalty. We
deliver an appealing performance to our partners through traditional and
inventive financing products, ensuring to stay at forefront of the ever-evolving
industry.
Winance worked on the European Lithium transaction with Kapital Global Advisors
Limited, Kapital Global is Winance's exclusive and strategic partner for
Australia, collectively we focus on ASX listed and private opportunities in Asia
Pacific region.
Kapital Global is an advisory firm based in the UAE, which led by Kapil Singh
and focuses on Asia Pacific, North & South America, Europe & Africa.

Further inquiry note:
info@europeanlithium.com

end of announcement euro adhoc
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issuer: European Lithium Limited
32 Harrogate Street
A-WA6007 West Leederville
phone:
FAX:
mail: katharina.loeckinger@europeanlithium.com
WWW: www.europeanlithium.com
ISIN: AU000000EUR7
indexes:
stockmarkets: Wien, Frankfurt
language: English

Original-Content von: European Lithium Limited, übermittelt durch news aktuell