European Lithium (ASX:EUR) has signed a binding agreement with Moosh Moosh to sell 100% interest in a non-core asset in North West Western Australia.

The company said the sale aligns with its strategy to focus on European assets supporting the green energy transition.

It also said the terms of the sale stipulate that European Lithium shall receive $1M in cash or shares from an ASX-listed company.

Moreover, European Lithium retains a 1% net smelter royalty on minerals extracted from the property, and the sale is expected to complete by 29 September 2023.