Sayenko Kharenko has acted as legal counsel to Millstone Group in relation to the acquisition of the entire shareholding in European Lithium Ukraine LLC (the Company) by European Lithium Limited (EUR), and Millstone Group’s subsequent investment into EUR.

The Company is in the process of obtaining special permits in respect of two lithium deposits, which are considered underexplored by modern exploration methods and contain significant exploration targets based on historical data. The acquisition is conditional upon the Company having obtained special permits for the extraction and production of lithium and certain other conditions originating from EUR’s status as a public listed company. As a consideration for acquisition of the Company, EUR will pay AUD 20 million worth of EUR’s ordinary shares and AUD 50 million in performance shares convertible into ordinary shares upon the projects having achieved specific performance hurdles (milestones).

Sayenko Kharenko provided full-scope legal support for the deal, including advising on complex corporate law and transactional matters, drafting and negotiating transaction documents, signing and pre-closing assistance. Johnson Winter & Slattery (Sydney, Australia) advised Millstone Group on Australian law matters. Atkinson Lawyers (Perth, Australia) acted as a lead counsel to EUR.

Millstone Group is a private investment company established in 2016 with a primary focus on Central and Eastern Europe. With offices in Poland, Ukraine and UAE, it provides traditional investment-related services such as capital raising, M&A advisory and asset management. Millstone Group has completed over 39 projects in capital raising and M&A.

EUR is the Australia-based mining exploration and development company with a primary listing on the Australia Securities Exchange (ASX: EUR) and a secondary listing on Frankfurt (FRA: PF8) and Vienna (VSE: ELI). Currently, it focuses on developing its wholly-owned Wolfsberg Lithium Project, which is located approximately 20 kilometres east of Wolfsberg (Austria) and approximately 270 kilometres south of Vienna (Austria).

Sayenko Kharenko’s core team was led by senior associate Ilhar Hakhramanov under the general supervision of partner Oleksandr Nikolaichyk.

January 2022, Ukraine