The board of European Metals on Wednesday confirmed that it had received an indicative offer from a member company of Krupa Global Investments (KGI) to purchase the Cinovec lithium project, located in the Czech Republic.
The letter from KGI, however, does not contain any detail with regards to price, terms or conditions, Australia- and UK-listed European Metals stated.
“In light of the absence of this information, European Metals does not consider this to be an offer to which it can give consideration at this time.”
Cinovec hosts a hard rock deposit with a total indicated resource of 372.4-million tonnes at 0.45% lithium oxide (Li2O) and 0.04% tin. Its inferred resource is 323.5-million tonnes at 0.39% Li2O and 0.04% tin, containing a combined 7.18-million tonnes lithium carbonate equivalent and 263 000 t of tin. An initial probable reserve of 34.5-million tonnes at 0.65% Li2O and 0.09% tin has been declared over the first 20 years of mining at 22 800 t/y of lithium carbonate.
European Metals has completed a prefeasibility study, which indicated a return post-tax net present value of $540-million and an internal rate of return of 21%.