REG - European Metals Hldg - Commencement of Trading on OTCQX Best Market

CEZ asAnnouncement

12/05/2022 10:15

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RNS Number : 2534L  European Metals Holdings Limited  12 May 2022

For immediate release

 

12 May 2022

 

European Metals commences trading on            OTCQX(®) Best
Market

European Metals accepted to trade on the US based OTCQX® Best Market Platform

Company will commence trading on OTCQX® Best Market under the codes EMHXY,
ERPNF and EMHLF on 12 May 2022

Trading will accelerate exposure to major US investors

OTCQX® Best Market adds to the Company's suite of active listings across the
ASX, AIM and European exchanges

European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: EMHXY)
("European Metals" or the "Company") is pleased to announce the Company will
commence trading on the OTCQX(®) Best Market Program, which is run by the OTC
Markets Group, following increased US investor interest in European Metals'
Cinovec project, the largest hard rock lithium deposit in Europe.

The Company will commence trading on 12 May 2022 under the symbols "EMHLF";
"EMHXY"; and "ERPNF."

Commenting on the OTCQX(®) Best Market membership, Executive Chairman Keith
Coughlan said:

"I am very pleased to see European Metals join the OTCQX, which will
significantly enhance the Company's exposure to North American investors.

"Trading on the OTCQX comes at a pivotal time for investors seeking to
leverage the transition away from fossil fuels, with the European Union
offering significant funding to accelerate change and adoption rates of
electric vehicles in the region continuing to climb.

"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 Cech 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."

OTCQX(®) Best Market increases the visibility of all member companies (which
includes other ASX mining companies such as Fortescue Mining Group and
Champion Iron Limited) and EMH anticipates that the membership will help the
Company grow its global brand, increase liquidity, and shape its message to
the US investment community.

The ASX will continue to be the Company's primary listing, with investors also
able to purchase shares through the OTCQX(®) Best Market, UK-based AIM market
and Germany's Frankfurt Börse.

European Metals confirms the listing is non-dilutive, as no additional capital
is required to be raised and no new shares will be issued on the OTCQX(®)
Best Market.

 

This announcement has been approved for release by the Executive Chairman.

 

 

 

OTCQX(®) Best Market Symbols

 

EMHXY - American Depositary Shares

ERPNF - Australia Chess Depositary Instrument

EMHLF - UK Depositary Instrument

 

 

 

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.

ENQUIRIES:

 European Metals Holdings Limited

 Keith Coughlan, Executive Chairman         Tel: +61 (0) 419 996 333

                                            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 (mailto:david@europeanmet.com)

 WH Ireland Ltd (Nomad & Joint Broker)

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

 (Corporate Finance)

 Harry Ansell/Jasper Berry (Broking)

 Shard Capital (Joint Broker)               Tel:  +44 (0) 20 7186 9950

 Damon Heath

 Erik Woolgar

 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

 

 

 

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