20 May 2022 MATTERS BEFORE THE COURTS RELATING TO THE AVEBURY NICKEL PROJECT TASMAINIA European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (EUR or the Company) advises that it has made proposals to, amongst others, the liquidators of Dundas Mining Pty Ltd (Receivers and Managers Appointed) (In Liquidation) (Dundas) seeking to change the fate of the Avebury Nickel Project in Burnie, Tasmania (the Project) controlled by Allegiance Mining Pty Ltd (Receivers and Managers Appointed) (Subject to a Deed of Company Arrangement) (Allegiance). The proposal put forward by EUR is a cash offer of $125m as reported in the media. EUR?s position is subject to a number of hurdles including discussions and negotiations as to the merits and structure of its proposals but more importantly, is whether Dundas can undertake this review given that the Project has, as a result all the insolvency of both Dundas and Allegiance already given rise to a transaction that is intended to transfer the ownership of Allegiance (and thereby the Project) to a third party. The transfer of Dundas?s shares in Allegiance to the third party is the subject of an application before the Supreme Court of Western Australia pursuant to section 444GA of the Corporations Act (Cth) seeking the leave of the Supreme Court to allow the sale of the shares to proceed. This application is to be heard in early June 2022 providing only a short window of opportunity. If the application under section 444GA of the Corporations Act (Cth) were successful, then EUR would be unable to advance its proposals. EUR is not an entity that is entitled to oppose or make submissions at the hearing of the application. It is important to note that EUR is unable and could not in any event comment or provide any opinion regarding the success, or otherwise, in relation to the application seeking leave to dispose of Dundas?s shares in Allegiance. Notwithstanding the above EUR will continue to explore all options and possibilities to see whether a transaction in the interest of shareholders could be achieved within the time frame. This announcement has been authorised for release to the ASX by the Board of the Company. ? END |