Australian mineral exploration and development company European Metals (EMH) announced that its shareholders have approved energy group CEZ’s investment in the Cinovec lithium-tin project in the Czech Republic.
Claimed to be one of the largest lithium deposits known in Europe, the Cinovec project is a high-grade underground deposit located in Prague. It is also said to be one of the biggest tin resources being developed in the world.
The approval, which furthers the development of the project, will allow CEZ to invest €29.1m for a 51% equity interest in EMH’s Czech subsidiary Geomet, which is also a licensee in the Cinovec project.
Cinovec lithium-tin project fully financed
EMH said that the Cinovec project is fully financed through the period to construction decision.
European Metals managing director Keith Coughlan said: “This is a very significant day in the life of the Cinovec Project. 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.
“We are very pleased to be in partnership with CEZ in the development of the Cinovec Project. CEZ not only provide corporate, technical and financial strength, they fully share the Company’s vision for the development of a lithium ion battery industry in Czech Republic.”
The transaction is planned for completion on 27 April 202o, with the work programme to start soon.
Last year, CEZ has launched a process to divest its assets in Romania. The potential sale included seven companies in Romania and excludes the firm’s assets that are engaged in energy services (ESCO) activities and part of trading.
