To close the deal, the current owner of two lithium fields needs to unblock special permits through court
European Lithium, an Australian company, has agreed to purchase Ukrainian company Petro Consulting to obtain special permits for lithium mining and processing in Ukraine, according to the company’s post on the Australian Stock Exchange.
To close the deal, Petro Consulting needs to unblock special permits for lithium mining and processing at two fields, Shevchenkivske and Dobra, through court.
According to the reached agreement, Millstone that owns Petro Consulting will invest $20 million in European Lithium, with $2.5 invested immediately and $15 upon closing the deal.
European Lithium is going to purchase Petro Consulting upon condition that the Ukrainian company manages to unblock special permits for development of the two lithium fields through court within one year after signing the agreement.
In November 2020, the State Service of Geology and Subsoil of Ukraine, at the request of Kyiv District Administrative Court, granted a special permit to Petro Consulting for development of Shevchenkivske area without holding an auction.
In the spring of 2021, the special permit was cancelled by the Decision of the Sixth Court of Appeal in response to the claim brought by the Prosecutor General’s Office.
In October last year, the Sixth Court of Appeal bound the State Service of Geology and Subsoil of Ukraine to consider Petro Consulting’s application for a special permit for Dobra field development.
Petro Consulting was founded in April 2010. Its authorized capital today is ₴340,200. Mykhailo Zhernov is the company’s shareholder and owner.
The Shevchenkivske project has an exploration target ranging from 11 to 14 million tons of lithium (Li2O content 1.2% to 1.3%), Dobra project 80 to 105 million tons (Li2O 1.1% to 1.4%).
In Ukraine, lithium fields are concentrated in Kirovohrad (Polokhivske field, Dobra area), Donetsk (Shevchenkivske field) and Zaporizhzhia oblasts (Kruta Balka area). In fact, mining works are performed at neither area at the moment.
European Lithium is an exploration and development company focused on its wholly-owned Wolfsberg Lithium Project in Austria.