RCS - European Metals Hldg - Lithium Specialist Marc Rowley to join EMH/Cinovec

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10/11/2022 08:15

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RNS Number : 9609F  European Metals Holdings Limited  10 November 2022

For immediate release

 

10 November 2022

EUROPEAN METALS HOLDINGS LIMITED

 

Experienced Lithium Project Delivery Specialist Marc Rowley to join European
Metals and the Cinovec Project

 

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX: EMHXY, ERPNF and
EMHLF) ("European Metals" or the "Company") is pleased to announce Marc Rowley
will lead its Definitive Feasibility Study (DFS) team to progress the Cinovec
Project in the Czech Republic.

Executive Chairman Keith Coughlan said:

"I am very pleased to have Marc Rowley join European Metals.  Marc will
significantly enhance the Company's expertise in relation to delivery of the
DFS for the Lithium Chemical Plant at the Cinovec Project.

"Marc managed the delivery of the DFS for the Goulamina Project, in Mali, West
Africa for Leo Lithium (recently spun out from Firefinch Limited) which was
completed in October 2020 and subsequently updated in December 2021. A final
investment decision was made based on the update and the project is now under
construction.

Prior to his work at Leo Lithium and Firefinch, Marc worked for Altura Mining
Limited where he was responsible for the management and delivery of the
Pre‐Feasibility Study (PFS) and DFS and the engineering, procurement,
construction and commissioning for the Pilgangoora Lithium mine in the Pilbara
region of Western Australia.

"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."

 

This announcement has been approved for release by the Board.

 

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

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. Cinovec hosts a globally significant hard rock
lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48%
Li(2)O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li(2)O and
0.05% Sn and an Inferred Mineral Resource of 294.7Mt at 0.39% Li(2)O and 0.05%
Sn containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and
335.1kt of tin (refer to the Company's ASX release dated 13 October 2021)
(Resource Upgrade at Cinovec Lithium Project).

An initial Probable Ore Reserve of 34.5Mt at 0.65% Li(2)O and 0.09% Sn
reported 4 July 2017 (Cinovec Maiden Ore Reserve - Further Information) has
been declared to cover the first 20 years mining at an output of 22,500tpa of
lithium carbonate (refer to the Company's ASX release dated 11 July 2018)
(Cinovec Production Modelled to Increase to 22,500tpa of Lithium Carbonate).

This makes Cinovec the largest hard rock lithium deposit in Europe, the fourth
largest non-brine deposit in the world and a globally significant tin
resource.

The deposit has previously had over 400,000 tonnes of ore mined as a trial
sub-level open stope underground mining operation.

On 19 January 2022, EMH provided an update to the 2019 PFS Update, conducted
by specialist independent consultants, which indicates a post-tax NPV of
USD1.938B and a post-tax IRR of 36.3% and confirmed that the Cinovec Project
is a potential low operating cost producer of battery-grade lithium hydroxide
or battery grade lithium carbonate as markets demand. It confirmed the deposit
is amenable to bulk underground mining (refer to the Company's ASX release
dated 19 January 2022) (PFS Update delivers outstanding results).
Metallurgical test-work has produced both battery-grade lithium hydroxide and
battery-grade lithium carbonate in addition to high-grade tin concentrate at
excellent recoveries. Cinovec is centrally located for European end-users and
is well serviced by infrastructure, with a sealed road adjacent to the
deposit, rail lines located 5 km north and 8 km south of the deposit, and an
active 22 kV transmission line running to the historic mine. As the deposit
lies in an active mining region, it has strong community support.

The economic viability of Cinovec has been enhanced by the recent strong
increase in demand for lithium globally, and within Europe specifically.

There are no other material changes to the original information and all the
material assumptions continue to apply to the forecasts.

 

BACKGROUND INFORMATION ON CEZ

Headquartered in the Czech Republic, CEZ a.s. is an established, integrated
energy group with operations in a number of Central and Southeastern European
countries and Turkey. CEZ's core business is the generation, distribution,
trade in, and sales of electricity and heat, trade in and sales of natural
gas, and coal extraction. CEZ Group has 33,000 employees and annual revenue of
approximately EUR 7.24 billion.

The largest shareholder of its parent company, CEZ a.s., is the Czech
Republic with a stake of approximately 70%. The shares of CEZ a.s. are traded
on the Prague and Warsaw stock exchanges and included in the PX and WIG-CEE
exchange indices. CEZ's market capitalization is approximately EUR 22.1
billion.

As one of the leading Central European power companies, CEZ intends to develop
several projects in areas of energy storage and battery manufacturing in the
Czech Republic and in Central Europe.

CEZ is also a market leader for E-mobility in the region and has installed and
operates a network of EV charging stations throughout Czech Republic. The
automotive industry in the Czech Republic is a significant contributor to GDP,
and the number of EV's in the country is expected to grow significantly in the
coming years.

 

CONTACT

For further information on this update or the Company generally, please visit
our website at www.europeanmet.com (http://www.europeanmet.com) or see full
contact details at the end of this release.

 

WEBSITE

A copy of this announcement is available from the Company's website at
www.europeanmet.com (http://www.europeanmet.com) .

ENQUIRIES:

 European Metals Holdings Limited            Tel: +61 (0) 419 996 333

 Keith Coughlan, Executive Chairman          Email: keith@europeanmet.com

 Kiran Morzaria, Non-Executive Director      Tel: +44 (0) 20 7440 0647

 David Koch, Company Secretary               Tel: +61 (0) 418 925 212

                                             Email: david@europeanmet.com

 WH Ireland Ltd (Nomad & Joint Broker)

 James Joyce/ Darshan Patel                  Tel: +44 (0) 20 7220 1666

 (Corporate Finance)

 Harry Ansell (Broking)

 Panmure Gordon (UK) Limited (Joint Broker)  Tel:  +44 (0) 20 7886 2500

 John Prior

 Hugh Rich

 James Sinclair Ford

 Harriette Johnson

 Blytheweigh (Financial PR)                  Tel: +44 (0) 20 7138 3222

 Tim Blythe

 Megan Ray

 Chapter 1 Advisors (Financial PR - Aus)

 David Tasker                                Tel: +61 (0) 433 112 936

 

The information contained within this announcement is considered to be inside
information, for the purposes of Article 7 of EU Regulation 596/2014, prior to
its release. The person who authorised for the release of this announcement on
behalf of the Company was Keith Coughlan, Executive Chairman.

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