2bb36f74-0410-44c8-ba46-b5fc2ee7918d.pdf
ASX Announcement
11 May 2016
European Lithium to list on ASX
Australian resource and investment company, Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) wishes to announce that European Lithium Limited (Euro Lithium) is aiming to list on the Australian Securities Exchange (ASX) by way of reverse takeover with Paynes Find Gold Limited (Paynes). Please find attached the announcement released by Paynes to the ASX today detailing the terms and conditions of the transaction.
Cape Lambert owns 26.2% of the pre-raising capital in Euro Lithium. Euro Lithium's Wolfsberg lithium project is located in Carinthia, 270 kilometers
south of Vienna, Austria.
Cape Lambert Executive Chairman, Mr Tony Sage, said "Cape Lambert is pleased a transaction has been done with European Lithium given it is a quality asset and at a time when lithium is in high demand. I am also pleased that this unlocks approximately $6m of value at the proposed
Paynes listing price for Cape Lambert shareholders."
Yours faithfully
Cape Lambert Resources Limited
Tony Sage
Executive Chairman
Cape Lambert Resources Limited (ASX: CFE) is a fully funded mineral development company with exposure to iron ore, copper, gold, uranium, manganese, lithium and lead-silver- zinc assets in Australia, Europe, Africa and South America.
Australian Securities Exchange
Code: CFE
Ordinary shares 720,686,586
Unlisted Options
7,675,000 ($0.088 exp 18 Dec 2016)
Board of Directors
Tony Sage Executive Chairman
Tim Turner
Non-executive Director
Jason Brewer
Non-executive Director
Melissa Chapman Company Secretary
Cape Lambert Contact
Investor Relations Phone: +61 8 9380 9555
Email: [email protected]
Australian Enquiries
Professional Public Relations David Tasker
Phone: +61 8 9388 0944
Mobile: +61 433 112 936
Email: [email protected]
www.capelam.com.au
Cape Lambert Resources Limited ABN 71 095 047 920
Corporate - 32 Harrogate Street, West Leederville WA 6007
11 May 2016
Australian Securities Exchange Limited Level 40, Central Park
-
St Georges Terrace Perth WA 6000
Registered Address:
Ground Floor, Suite 1, 437 Roberts Road
Subiaco WA 6008
Phone: (08) 9481 3992
Fax: (08) 9381 1122
ABN: 45 141 450 624
ACQUISITION OF ADVANCED LITHIUM PROJECT WITH RESOURCE
HIGHLIGHTS
-
JORC compliant inferred resource of 3,700,000 tonnes at 1.5% Li2O (55,500 tonnes contained Lithium).
-
Previously completed 17,000 metres of drilling and 1,400 metres of declines, drives and crosscuts. This work will allow the Company to examine routes to fast track development phase.
-
Additional drilling to commence before completion of transaction with a view to upgrading resource.
-
Granted Mining Leases over 11 mining areas by the Austrian Mining Authority.
-
Bulk sample (1,000 tonnes) taken for metallurgical test work. Bankable feasibility study to commence immediately after completion.
-
Planned production profile of 15-20 months from acquisition.
-
Located 40 kilometres from Samsung battery plant in Gratz, Austria.
-
Proposed Director and Management have considerable experience in resource project development and wide project execution experience.
-
Current owner has spent 11.53 million Euros on acquisition and exploration.
-
Central European location will allow the Company to help meet EU demand. Good local infrastructure and sources of energy nearby. The project provides a significant transport cost advantage over lithium from South America and Australia.
-
Close to the largest lithium import markets in EU. EU is a major Lithium importer, consuming 24% of the global market, second only to China.
Paynes Find Gold Limited (ASX: PNE) (Company) is pleased to announce it has entered into a binding terms sheet pursuant to which it has agreed, subject to satisfaction of certain conditions precedent, to acquire 100% of the shares in European Lithium AT (Investments) Limited (Company Number 162395) (EL) the ultimate 100% owner of ECM Lithium AT GmbH, a subsidiary entity of European Lithium Limited (Company Number 1629378) and, the 100% owner and holder of the Wolfsberg Lithium Project in Austria from the shareholders of European Lithium Limited (Acquisition). See corporate structure Appendix A.
Project Background Location
The Wolfsberg lithium project which is located in Carinthia, 270 km south of Vienna, Austria and 20 km east of Wolfsberg, an industrial town, with established infrastructure, including access to the European motorway and railway network. The main industry in the area is forestry and a pulp and paper mill is in operation nearby. The Project is strategically placed for European manufacturers using lithium, whilst by-product production of feldspar, quartz and mica may enhance the Project materially, subject to further metallurgical testing to determine the by-product qualities and market values.
History
The Project was discovered by Minerex, an Austrian government company, in 1981. Following extensive exploration, technical and commercial studies, a pre-feasibility study was completed in 1987. This study concluded that the Project did not meet investment criteria due to the then lower lithium prices and the 54 per cent revaluation of the Austrian Schilling to the US dollar during the time of the pre-feasibility study to September 1987. In 1988 therefore the Austrian Government decided not to develop the Project and Minerex was closed.
In 1988 the Project was transferred to Bleiberger Bergwerksunion ("BBU"), an Austrian government owned lead-zinc miner. However, in 1991 BBU was closed by the Austrian government and the Project was sold to Kärntner Montanindustrie GmbH ("KMI"), a private mining company that mines micaceous hematite in Carinthia and, with its mines in Morocco, is the market leading supplier of that product. KMI carried out the work specified by the Austrian mining authorities required to maintain the mine and mining licence in good order.
Following a number of changes of ownership the project was acquired by EL in September 2011 for 9.7 million euros plus 20 per cent VAT. At that time the Company was wholly owned by the Exchange Minerals Group. On 2 December 2011, 80% of the ordinary shares of the Company then on issue were transferred from the Exchange Minerals Group to Global Strategic Minerals (ASX:GSZ a company then listed on the ASX. In September 2014, in consideration for the termination of a prior agreement, EL entered into a royalty agreement with Exchange Minerals Limited under which EL is obliged to pay to Exchange Minerals Limited a royalty of 1.50 euros per dry tonne of 'all mineral product' sold.
EL expended a further 1.83 million euros on exploration and development including drilling, a scoping study and the extraction of two 500 tonne bulk samples in October 2013.
Historical Exploration
Minerex completed exploration work that comprised initial surface geology mapping along with 9,940 m³ of surface trenches and a Diamond drilling program totalling 12,012 m collared from surface. In 1985 an underground exploration programme was undertaken including development of a decline from the surface from the northern side of Brandrucken Mountain through the amphibole schist to provide access to the pegmatite veins. Crosscutting drifts were driven along strike of selected veins to provide access for mapping and sampling and an additional decline was driven to access the veins in the mica schist. In all 1,389m of underground development was mined. A Diamond drilling campaign of 4,715 m was undertaken from underground to effectively infill the surface drilling to about 50 m intervals in the eastern part of Zone 1.
Following the acquisition of the Wolfsberg project, EL undertook exploration drilling in 2012 on the southern flank of the anticline which confirmed the structural interpretation and presence of lithium bearing pegmatite veins. Mining was undertaken in 2013 to collect 500 tonne bulk samples from the two ore types for metallurgical testing. The Minerex drilling data was utilised to develop a three dimensional resource model for use in mine planning.