JOHANNESBURG (miningweekly.com) - Mineral exploration and development company European Metals on Friday said correspondence received by the company from Czech Republic Industry and Trade Minister Thomas Huner purports to terminate the memorandum of understanding (MoU) between the company and the Ministry of Industry and Trade.
The MoU, dated October 2, 2017, outlines mutual willingness to explore downstream processing opportunities, Czech academic research into lithium processing, potential future cooperation and discussing and exploring possibilities of future agreements.
European Metals on Friday assured shareholders that all of its rights are derived from the current Czech legal system, notably the Geological and Mining Act, and not the MoU and, therefore, any termination of the MoU would not in any way affect the exploration rights of the company or the company's tenure over its exploration permits.
It added that metallurgical testwork, discussions with offtakers and preparations for feasibility drilling continued.
However, the company said it remains committed to working with all stakeholders, including the Minister of Industry of Trade and the Czech Republic government, to successfully develop the Cinovec project as a first-in-kind project that will pave the way for a successful lithium mining and processing industry in the country.
"We look forward to meeting with the Trade and Industry Minister in the near term to further these discussions," the company said.