REG - Cadence Minerals PLC - European Metals Announcement: Just Transition Fund

Cadence MineralsAnnouncement

30/01/2023 12:00

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RNS Number : 2799O  Cadence Minerals PLC  30 January 2023

Cadence Minerals Plc

("Cadence Minerals", "Cadence", or "the Company")

 

European Metals Announcement: Just Transition Fund Approves Cinovec Project

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the
announcement by European Metals Holdings Limited (ASX & AIM: EMH, OTCQX:
EMHXY, ERPNF and EMHLF) that the Cinovec Project has been classified as a
Strategic Project for the Usti Region of the Czech Republic. The list of
Strategic Projects has been approved by the European Commission, the Czech
Central Government and the Czech Regional Goverment in Usti. Being classified
as such means that the Cinovec Project has priority for grant funding from
the Just Transition Fund ("JTF") co-funding, ahead of many other projects
that have been submitted.

 

The total amount allocated by the Just Transition fund for the Czech Republic
is CZK 41B (€1.64B) of which the Usti region has been allocated CZK 15.8B
(approx. €632M).

 

The first call for grant applications under the JTF opened on 14 November 2022
and closes on 31 December 2023.

 

Given the total amount which may be applied for by the eleven designated
Strategic Projects in the Usti region in the first call is CZK 8.3B (approx
€350M) and that the funds allocated in this first call from the Just
Transition Fund to these Strategic Projects totals CZK7.3B (approx €300M),
although there can be no certainty,  the Company is confident that Cinovec
will receive a significant portion of the funds applied for from the JTF for
the Project.

 

The maximum funding to be made available upon application to each Strategic
Project in the Usti Region is CZK 1.2bn (approx €49M). The Cinovec Project
has been allocated the maximum possible JTF grant of CZK 1.2B (approx €49M),
subject to passing through the application process, funds remaining available
and obtaining the necessary permits for the early-stage Cinovec work
programmes to which this grant funding is planned to be applied to, in
particular the early full development of the twin decline entry/egress system
for the mine.

 

Accordingly, *Geomet s.r.o (the Cinovec project company) will apply for JTF
Grant funding for the maximum amount of CZK 1.2B (approx  €49M).

 

EMH Executive Chairman Keith Coughlan said:

"I am very pleased that the European Union via the Just Transition Fund has
approved the Cinovec Project as a Strategic Project for the Usti Region of the
Czech Republic.  This approval provides further evidence of strong support
from the Czech Government and the European Union and the Europe-wide
recognition of the critical part which the Cinovec Project will play in
enabling the EU to reach its stated goals of lithium self-sufficiency by
2030."

 

"The proposed grants from the Just Transition Fund could play an important
part in accelerating the development of the Cinovec Project. For example, the
initial entry into the deposit via twin declines and ancillary road network at
the proposed Dukla site are likely to be early-stage beneficiaries of this
funding. This could reduce the time until first ore is produced by the Cinovec
Project post final investment decision.  As the funding is in the form of a
non-repayable grant this could also have the additional benefit of not
diluting the existing shareholders of the Company."

 

"European Metals is well positioned for the rising demand in battery
materials, developing the Cinovec project, the largest hard rock lithium
project in the EU, which is centrally located on the Czech Republic's border
with Germany. The project possesses excellent ESG credentials which will
enable the production of battery grade lithium hydroxide and carbonate with
potentially one of the lowest CO(2) emissions, globally."

Link here
(https://www.londonstockexchange.com/news-article/EMH/just-transition-fund-approves-cinovec-project/15814577)
to view the full EMH announcement

 

*Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium/Tin Project. Geomet has been granted a
preliminary mining permit by the Ministry of Environment and the Ministry of
Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its
wholly owned subsidiary, SDAS. Headquartered in the Czech Republic, CEZ a.s.
is an established, integrated energy group with operations in a number of
Central and South-eastern European countries and Turkey.

 

Cadence Minerals holds approximately 7.2% percent of the equity in European
Metals Holdings.

 

 For further information contact:

 Cadence Minerals plc                     +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)      +44 (0) 207 220 1666
 James Joyce
 Darshan Patel

- Ends -

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as ''believe'' ''could'' "should"
''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative
of those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and sources of
funding thereof) competitive advantages business prospects and opportunities.
Such forward-looking statements reflect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.  Many factors could cause actual results to differ materially from
the results discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business conditions
competition environmental and other regulatory changes actions by governmental
authorities the availability of capital markets reliance on key personnel
uninsured and underinsured losses and other factors many of which are beyond
the control of the Company. Although any forward-looking statements contained
in this announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

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