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Paynes Find plans switch to lithium with acquisition of Austrian project


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Paynes Find plans switch to lithium with acquisition of Austrian project

Gold miner PaynesFind Gold Ltd. is looking to enter the lithium market with the acquisitionof a project in Austria, according to a May 11 statement.

The company said it will retain its Paynes Find gold project in Western Australia andkeep it in good standing with minimum expenditure. A review will be undertaken bythe management team to decide on its development or a joint venture.

Paynes Find entered into a binding terms sheet to acquire 100%of European Lithium AT (Investments) Ltd., which owns 100% of ECM Lithium AT GmbH,a subsidiary entity of European LithiumLtd., and the Wolfsberg lithium project in Austria.

The company is required to pay an initial A$200,000 and a furtherA$550,000 on completion of due diligence.

At completion, Paynes Find will initially issue 187.5 millionordinary shares and a further 62.5 million common shares when European Lithium upgradesthe project's JORC-compliant resource to a minimum of 4.5 million tonnes inferredresource at 1.3% lithium oxide. Currently, the Wolfsberg project has a JORC-compliantinferred resource of 3.7 million tonnes at 1.5% lithium oxide for 55,500 tonnesof contained lithium.

The company will also pay A$1.5 million as reimbursement of expendituresin developing the project.

In case European Lithium gets an offer of at least A$20 million,Paynes Find has the right to match the offer.

The transaction is conditional on successful due diligence, securingnecessary regulatory and shareholder approvals and Paynes Find having at least A$5.0million in the bank. The company said it intends to raise at least A$6.0 million.

As part of the acquisition, the company intends to change itsname to European Lithium Ltd.

Additionally, Steve Kesler will be appointed CEO of Paynes Find,and two existing directors of the company will resign, to be replaced by nomineesof European Lithium.