European Metal Holdings (AIM:EMH) unveiled to investors that the CEZ investment in the Cinovec project has now been approved by shareholders.
The €29.1 million investment will grant CEZ a 51% equity interest in Geomet, EMH’s Czech subsidiary that holds the Cinovec licences and will take the project forward to construction.
European Metals, through its wholly owned subsidiary, Geomet, controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project.
The funds contributed by CEZ will fully finance Geomet and Cinovec through the period to construction permitting and commencement of construction.
The investment paves the way for the project to become the first EU producer of battery grade lithium compounds from a local lithium resource, the group outlined this morning.
Shares in European Metal Holdings were trading 29.27% higher at 13.25p during Thursday morning.
"This is a very significant day in the life of the Cinovec Project,” said Keith Coughlan, Managing Director of European Metals.
“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,” he added.
To-date, the Cinovec Project has drilled in excess of 13,800m of diamond drilling under the management of EMH.
The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.
The group said the transaction is scheduled to be completed on 27 April 2020 and that the work program will begin immediately.
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