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European Metals (ASX:EMH) - Managing Director, Keith Coughlan
Managing Director, Keith Coughlan
Source: PPR Australia
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  • European Metals (EMH) has gained shareholder approval for a €29.1 million investment by CEZ to gain a 51 per cent share in EMH subsidiary, Geomet
  • The investment paves the way for the company’s Cinovec lithium project to go ahead up to the point of construction
  • The Cinovec project now has a pathway to becoming the first European Union producer of battery-grade lithium from a local lithium resource
  • The transaction is scheduled to be completed on Monday, April 27, and the work program will begin immediately
  • The company seems all set to be a major player in the European lithium market
  • European Metals has had a big day so far off the back of the CEZ announcement – shares are up 30.6 per cent to 23.5 cents each

European Metals (EMH) has gained shareholder approval for a 29.1 million investment by CEZ to gain a 51 per cent share in EMH subsidiary, Geomet.

The investment paves the way for the company’s Cinovec lithium project to go ahead up to the point of construction.

A European first

The Cinovec project now has a pathway to becoming the first European Union producer of battery-grade lithium compounds from a local lithium resource.

The transaction is scheduled to be completed on Monday, April 27, and the work program will begin immediately.

European Metals Managing Director Keith Coughlan says it’s a marquee day for the Cinovec project.

“CEZ not only provides corporate, technical and financial strength, they fully share the Company’s vision for the development of a lithium-ion battery industry in the Czech Republic,” Keith explained.

“To have Europe’s largest hard rock lithium project fully funded to decision to construct ensures that Cinovec is firmly entrenched as the pre-eminent lithium deposit in Europe.”

European Metals Managing Director Keith Coughlan

CEZ is a leading Central European power company. The company’s strategy in acquiring the majority share of Cinovec licensee Geomet is simple – CEZ aims to develop several projects in areas of energy storage and battery manufacturing in the Czech Republic and in Central Europe, to shore up its stake in the emerging ion battery market.

Legit lithium

Cinovec hosts a globally significant hard rock lithium deposit, with a total indicated mineral resource of 372.4 million tonnes at 0.45 per cent lithium oxide and 0.04 per cent tin. The mine is estimated to have a 20-year lifespan at an output of 22,500 tonnes per annum of lithium carbonate.

The funds contributed by CEZ will fully finance the mine’s development through to the period of construction permitting and commencement.

The next phase of work at Cinovec involves ore sampling test work, and the hiring of management and lab staff.

EMH has confirmed that all staff across Europe and Australia are currently unaffected by COVID-19 and able to carry on as usual despite remote working conditions.

This includes the administration and lab staff required to advance Geomet’s definitive feasibility study and front-end engineering design programmes of work.

With the investment from CEZ, the project is now fully funded right up to the construction approval phase.

European Metals seems all set to be a major player in the European metals market.

The company has had a big day so far off the back of the CEZ announcement — shares are up 30.6 per cent to 23.5 cents each as at 2 pm AEST.

EMH by the numbers
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