Cinovec lithium-tin project : EMH agrees to sell 51% stake to CEZ Group for €29m
European Metals Holdings (EMH), an Australian mineral exploration and development company, said that its shareholders have given approval to an investment of €29.1 million from CEZ Group in the company’s Cinovec lithium-tin project in the Czech Republic.
CEZ Group, which is a Czech Republic-based electricity conglomerate, will acquire a 51% stake in Geomet, the Czech subsidiary of European Metals Holdings that holds the Cinovec licenses.
The investment from the electricity conglomerate will enable full funding for the Cinovec lithium-tin project, from design to its construction, thereby giving it the scope to become the first producer of battery grade lithium compounds from a local lithium resource in the European Union.
Keith Coughlan – European Metals Holdings Managing Director 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 Australian mineral exploration and development company said that having completed the agreement with CEZ, Geomet will now immediately launch the definitive feasibility study (DFS) and front-end engineering design (FEED) of the lithium-tin project.
Located 100km northwest from Prague on the border with Germany, Cinovec is claimed to be the largest hard rock lithium deposit in Europe and also the fourth largest non-brine deposit in the world apart from being a globally significant tin resource.
According to European Metals Holdings, as of November 2017, Cinovec lithium-tin project has a total indicated mineral resource of 372.4Mt at 0.45% Li2O and 0.04% Sn and an inferred mineral resource of 323.5Mt at 0.39% Li2O and 0.04% Sn having a combined 7.22 million tonnes lithium carbonate equivalent and 263kt of tin.