Shareholders in Australia- and UK-listed European Metals Holdings (EMH) have approved energy group CEZ’s investment in the Cinovec project, paving the way for the lithium and tin project, in Czech Republic, to be developed.
CEZ will invest €29.1-million for a 51% equity interest in Geomet – EMH’s Czech subsidiary and holder of the Cinovec lithium and tin project licences.
The CEZ investment will fully finance Geomet and Cinovec through permitting and commencement of construction, thereby enabling the project to become the first European Union producer of battery-grade lithium compounds from a local lithium resource.
The transaction is scheduled for completion by April 27, with the work programme starting immediately thereafter.
“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,” said EMH MD Keith Coughlan on Thursday.
With the completion of the agreement with CEZ, Geomet would now start the definitive feasibility study and front-end engineering design programmes of work.
The principal components of the next phase of work on Cinovec were the availability of management and staff, ore samples for test work and laboratory staff and time.
In terms of impact from Covid-19, EMH said that the Cinovec project was unaffected by the pandemic, while its management and staff at both EMH and Geomet were also not affected.
In addition, the current restrictions on travel and meetings were not expected to have any impact for the foreseeable future. “All staff are able and continue to work remotely,” EMH noted.
To-date, the Cinovec project has drilled in excess of 13 800 m of diamond drilling under the management of EMH. Extensive sample quantities are available from the resulting drill core as well as material recovered from historic adit drives into the orebody. Significant quantities of ore sample are held at our laboratory partners in Germany and at the project office in the Czech Republic.
EMH and Geomet have confirmed with their laboratory and engineering partners in Germany and Australia that staff and laboratories involved in the definitive feasibility study and front-end engineering design programmes over the next three months are ready and open for work on an immediate basis.