REG - European Metals Hldg - Full Environmental Impact Assessment Submitted

European Metals HoldingsAnnouncement

Tue 07:00

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RNS Number : 6062O  European Metals Holdings Limited  13 January 2026

 

FULL ENVIRONMENTAL IMPACT ASSESSMENT SUBMITTED FOR CINOVEC LITHIUM PROJECT

HIGHLIGHTS

·    Full Environmental Impact Assessment (EIA) for the Cinovec Lithium
Project submitted to the Czech Ministry of the Environment on 31 December 2025

·    Submission completes the two-stage EIA process following
screening-stage assessment lodged in 2025

·    EIA submission satisfies a key condition of the EU Just Transition
Fund grant

·   DFS recently confirmed a 26+ year mine life and forecast production of
~37,500tpa battery-grade lithium carbonate

·     Project remains on track to meet the Just Transition Fund
requirement for EIA approval by 30 June 2026

 

European Metals Holdings Limited (ASX and AIM: EMH, OTCQX: EMHXY/EMHLF)
("European Metals" or the "Company") is pleased to advise that the full
Environmental Impact Assessment (EIA) for the Cinovec Lithium Project
(Project) was formally submitted to the Czech Ministry of the Environment
(Ministry) on 31 December 2025.

The submission completes the two-stage EIA process, following lodgement of the
screening-stage assessment earlier in 2025, and represents a key regulatory
milestone for the Project.

This EIA covers the entire Cinovec development and supports the outcomes of
the recently completed Definitive Feasibility Study (DFS), which confirmed
Cinovec as a long-life, large-scale European lithium project with a 26+
year mine life and forecast production of approximately 37,500 tonnes per
annum of battery-grade lithium carbonate 1  (#_ftn1) .

Review Process

The Ministry of the Environment will now commence its formal review of the
EIA. The documentation is expected to be made publicly available for
consultation later this quarter, with the Ministry to determine the timing for
public submissions and hearings.

Scope of the EIA

The EIA identifies and assesses potential environmental impacts associated
with the Project and outlines proposed mitigation and management measures,
including monitoring requirements. It considers physical, biological and
socio-economic factors from an environmental protection perspective and
incorporates the technical modelling required under Czech and EU regulations.

EU Just Transition Fund Condition Met

Submission of the EIA satisfies a key condition of the EU Just Transition Fund
(JTF) grant

awarded to the Cinovec Project 2  (#_ftn2) .

 

In April 2025, the Czech selection panel approved CZK 800
million (approximately US$36

million at the time) in grant funding. Conditions of the grant require:

ü Submission of the full EIA by 31 December 2025

·      Approval of the EIA by the Czech Ministry of the Environment
by 30 June 2026

 

Executive Chairman Keith Coughlan said:

"Submitting the full EIA is an important step forward for Cinovec and follows
the completion of the DFS, which confirmed the scale, longevity and strategic
importance of the Project. This strategic importance has been definitively
unpinned by the ~EUR 360 million grant approved to the project recently.

 

Environmental approvals are critical to development in the Czech Republic, and
meeting the EIA submission deadline was a key requirement under the Just
Transition Fund. The Geomet team has done an excellent job delivering this
work within the required timeframe and keeping the Project on schedule."

 

ENDS

 

This announcement has been approved for release by the Board.

 

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.

ENQUIRIES:

 European Metals Holdings Limited

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

                                               Email: keith@europeanmet.com (mailto:keith@europeanmet.com)

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

 Carly Terzanidis, Company Secretary           Tel: +61 8 6245 2050

                                               Email: cosec@europeanmet.com (mailto:cosec@europeanmet.com)

 Zeus Capital Limited (Nomad & Broker)

 James Joyce/ Darshan Patel/ Chris Wardley     Tel: +44 (0) 203 829 5000

 (Corporate Finance)

 Harry Ansell (Broking)

   BlytheRay (Financial PR)

   Tim Blythe                                  Tel: +44 (0) 20 7138 3222

   Megan Ray

   Chapter One Advisors (Financial PR - Aus)

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

                                               Email: dtasker@chapteroneadvisors.com.au
                                               (mailto:dtasker@chapteroneadvisors.com.au)

 

 

PROJECT OVERVIEW

 

Cinovec Lithium Project

 

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium 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 54.4Mt at 0.58% Li(2)O ,
Indicated Mineral Resource of 378.23Mt at 0.41% Li(2)O and an Inferred Mineral
Resource of 309.49Mt at 0.39% Li(2)O containing a combined 7.45 million tonnes
Lithium Carbonate Equivalent (refer to the Company's ASX/ AIM release dated 23
December 2025) (Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate
Producer Strategically Positioned to supply European EV and Energy-storage
Sectors).

 

A Proven and Probable Ore Reserve of 54.4Mt at 0.58% Li(2)O has been declared
to cover the first 26 years mining at an output of 37,500tpa of lithium
carbonate (refer to the Company's ASX/ AIM release dated 23 December 2025)
(Cinovec DFS Confirms Long-life Battery Grade Lithium Carbonate Producer
Strategically Positioned to supply European EV and Energy-storage Sectors).

 

The Definitive Feasibility Study (DFS) confirmed the economic viability of the
Cinovec Project with steady-state production of 37,500 tpa of battery-grade
lithium carbonate (Li₂CO₃), representing ~5.2% of EU demand in 2030 and
sufficient for >900,000 50kWh EV batteries annually.  Cinovec will have a
28+ year operating life, underpinned by a 748Mt Resource @ 0.19% Li₂O and
a 55.4Mt Ore Reserve, with expansion optionality (refer to the Company's ASX/
AIM release dated 23 December 2025) (Cinovec DFS Confirms Long-life Battery
Grade Lithium Carbonate Producer Strategically Positioned to supply European
EV and Energy-storage Sectors).

This makes Cinovec the largest hard rock lithium deposit in Europe and by far
the largest hard rock lithium deposit in the European Union.

 

Cinovec has been designated a Strategic Project by the European Union under
the Critical Raw Materials Act (refer to the Company's ASX/ AIM release dated
25/26 March 2025) (Cinovec declared a Strategic Project under EU Critical Raw
Materials Act) and a Strategic Deposit by the Czech Government (refer to the
Company's ASX/ AIM release dated 7 March 2025) (Cinovec declared Strategic
Deposit by Czech Government).

 

Cinovec has received recent impetus from the EU and the Czech Government in
the form of grants of USD36 million from the EU Just Transition fund (refer to
the Company's ASX/ AIM release dated 28 April 2025) (USD 36 million Just
Transition Fund Grant Approved for Cinovec Project) and up to EUR360 million
by the Czech Government (refer to the Company's ASX/ AIM release dated 7 March
2025) (Approval of up to €360 Million  Czech Government Grant).

 

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

 

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. The deposit lies in an active mining
region.

 

The Cinovec processing plant comprises of a Front-End Comminution and
Beneficiation circuit (FECAB) and Lithium Chemical Plant circuit (LCP) in
combination producing Lithium Carbonate end products and will be located on
the Prunéřov 1 Power Station site located approximately 59km by rail from
the Cinovec mine site (refer to the Company's ASX/ AIM releases dated 26 April
2024 (New Lithium Plant Site Expected to Improve Project Permitting and
Economics) and 27 November 2024 (Cinovec Project Update)).

 

BACKGROUND INFORMATION ON CEZ

 

Headquartered in the Czech Republic, CEZ a.s. is one of the largest companies
in the Czech Republic and a leading energy group operating in Western and
Central Europe. 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. The foundation of power generation at CEZ Group are emission-free
sources.  The CEZ strategy named Clean Energy for Tomorrow is based on
ambitious decarbonisation, development of renewable sources and nuclear
energy. CEZ announced that it would move forward its climate neutrality
commitment by ten years to 2040.

 

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 28.2
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.

 

COMPETENT PERSONS AND QUALIFIED PERSON FOR THE PURPOSES OF THE AIM NOTE FOR
MINING AND OIL & GAS COMPANIES

 

Information in this release that relates to the FECAB metallurgical testwork
is based on, and fairly reflects, technical data and supporting documentation
compiled or supervised by Mr Walter Mädel, a full-time employee of Geomet
s.r.o an associate of the Company. Mr Mädel is a member of the Australasian
Institute of Mining and Metallurgy ("AUSIMM") and a mineral processing
professional with over 27 years of experience in metallurgical process and
project development, process design, project implementation and operations. Of
his experience, at least 5 years have been specifically focused on hard rock
pegmatite Lithium processing development. Mr Mädel consents to the inclusion
in this release of the matters based on this information in the form and
context in which it appears.  Mr Mädel is a participant in the long-term
incentive plan of the Company.

 

Information in this release that relates to exploration results is based on,
and fairly reflects, information and supporting documentation compiled by Dr
Vojtech Sesulka. Dr Sesulka is a Certified Professional Geologist (certified
by the European Federation of Geologists), a member of the Czech Association
of Economic Geologist, and a Competent Person as defined in the JORC Code 2012
edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Dr Sesulka consents to the inclusion in this
release of the matters based on his information in the form and context in
which it appears. Dr Sesulka is an independent consultant with more than 10
years working for the EMH or Geomet companies. Dr Sesulka does not own any
shares in the Company and is not a participant in any short- or long-term
incentive plans of the Company.

 

Information in this release that relates to metallurgical test work and the
process design criteria and flow sheets in relation to the LCP is based on,
and fairly reflects, information and supporting documentation compiled by Mr
Grant Harman (B.Sc Chem Eng, B.Com). Mr Harman is an independent consultant
and the principal of Lithium Consultants Australasia Pty Ltd with in excess of
14 years of lithium chemicals experience. Mr Harman consents to the inclusion
in this release of the matters based on his information in the form and
context that the information appears. Mr Harman is a participant in the
long-term incentive plan of the Company.

 

The information in this release that relates to Mineral Resources and
Exploration Targets is based on, and fairly reflects, information and
supporting documentation prepared by Mr Lynn Widenbar. Mr Widenbar, who is a
Member of the Australasian Institute of Mining and Metallurgy and a Member of
the Australasian Institute of Geoscientists, is a full-time employee of
Widenbar and Associates and produced the estimate based on data and geological
information supplied by European Metals. Mr Widenbar has sufficient experience
that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as a
Competent Person as defined in the JORC Code 2012 Edition of the Australasian
Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Widenbar consents to the inclusion in this release of the matters
based on his information in the form and context that the information appears.
Mr Widenbar does not own any shares in the Company and is not a participant in
any short- or long-term incentive plans of the Company.

 

The information that relates to production targets for the Cinovec Lithium
Project is based on information compiled by Mr Graeme Fulton, a Competent
Person who is a Fellow of the Australasian Institute of Mining &
Metallurgy. Mr Fulton is an Employee of Bara Consulting who are a consultant
to the Company. Mr Fulton does not own any shares, options / performance
rights in the Company and is not a participant in the Company's short or
long-term incentive plan. Mr Fulton has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to
the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Fulton consents to the
inclusion in the report of the matters based on his information in the form
and context in which it appears.

 

The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and, in the case of estimates of Mineral Resources, Ore
Reserves, exploration and production targets, and forecast financial
information, that all material assumptions and technical parameters
underpinning the information in the relevant market announcements continue to
apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person's findings are presented have not been
materially modified from the original market announcement.

 

CAUTION REGARDING FORWARD LOOKING STATEMENTS

 

Information included in this release constitutes forward-looking statements.
Often, but not always, forward looking statements can generally be identified
by the use of forward looking words such as "may", "will", "expect", "intend",
"plan", "estimate", "anticipate", "continue", and "guidance", or other similar
words and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production outputs.

 

Forward looking statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the company's actual results,
performance, and achievements to differ materially from any future results,
performance, or achievements. Relevant factors may include, but are not
limited to, changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for production inputs,
the speculative nature of exploration and project development, including the
risks of obtaining necessary licences and permits and diminishing quantities
or grades of reserves, political and social risks, changes to the regulatory
framework within which the company operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.

 

Forward looking statements are based on the Company and its management's good
faith assumptions relating to the financial, market, regulatory and other
relevant environments that will exist and affect the company's business and
operations in the future. The company does not give any assurance that the
assumptions on which forward looking statements are based will prove to be
correct, or that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or foreseeable by
the company or management or beyond the company's control.

 

Although the Company attempts and has attempted to identify factors that would
cause actual actions, events or results to differ materially from those
disclosed in forward looking statements, there may be other factors that could
cause actual results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the reasonable
control of the company. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward looking statements in these
materials speak only at the date of issue. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any obligation to
publicly update or revise any of the forward looking statements or to advise
of any change in events, conditions or circumstances on which any such
statement is based.

 

LITHIUM CLASSIFICATION AND CONVERSION FACTORS

 

Lithium grades are normally presented in percentages or parts per million
(ppm). Grades of deposits are also expressed as lithium compounds in
percentages, for example as a percent lithium oxide (Li(2)O) content or
percent lithium carbonate (Li(2)CO(3)) content.

 

Lithium carbonate equivalent ("LCE") is the industry standard terminology for,
and is equivalent to, Li(2)CO(3). Use of LCE is to provide data comparable
with industry reports and is the total equivalent amount of lithium carbonate,
assuming the lithium content in the deposit is converted to lithium carbonate,
using the conversion rates in the table included below to get an equivalent
Li(2)CO(3) value in percent. Use of LCE assumes 100% recovery and no process
losses in the extraction of Li(2)CO(3) from the deposit.

 

Lithium resources and reserves are usually presented in tonnes of LCE or Li.

 

The standard conversion factors are set out in the table below:

 

Table: Conversion Factors for Lithium Compounds and Minerals

 

 Convert from                   Convert to Li  Convert to Li(2)O  Convert to Li(2)CO(3)  Convert to LiOH.H(2)O
 Lithium            Li          1.000          2.153              5.325                  6.048
 Lithium Oxide      Li(2)O      0.464          1.000              2.473                  2.809
 Lithium Carbonate  Li(2)CO(3)  0.188          0.404              1.000                  1.136
 Lithium Hydroxide  LiOH.H(2)O  0.165          0.356              0.880                  1.000
 Lithium Fluoride   LiF         0.268          0.576              1.424                  1.618

 

 1  (#_ftnref1) Refer ASX announcement dated 23 December 2025

 2  (#_ftnref2) Refer ASX announcement dated 28 April 2025

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