REG - European Metals Hldg - USD 36m JTF Grant Approved for Cinovec Project

European Metals HoldingsAnnouncement

28/04/2025 07:00

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RNS Number : 3974G  European Metals Holdings Limited  28 April 2025

For immediate release
 
                28 April 2025

The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014 ("MAR") as it forms part of UK domestic law by virtue of the European
Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's
obligations under Article 17 of MAR.

 

USD 36 million Just Transition Fund Grant

Approved for Cinovec Project

 

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY
and EMHLF) ("European Metals" or the "Company") is pleased to announce the
following update in relation to grant funding by the European Union for the
Cinovec Project ("Cinovec" or "the Project").

Highlights

·      Czech selection panel of the managing authority for the EU Just
Transition Fund ("JTF") has approved a CZK 800 million (US$ 36 million) grant
to the Cinovec Project.

·      JTF grant is conditional on the Project Environmental Impact
Assessment ("EIA") being submitted by 31(st) December 2025 and approval of the
EIA by the Czech Ministry of Environment by 30(th) June 2026.

·      The Cinovec Project is a Strategic Project under the EU Critical
Raw Materials Act ("CRMA").

·      Cinovec mineral deposit is designated a Strategic Deposit by the
Czech government for the purposes of the Czech Construction Code.

 

Just Transition Fund

Further to the Project being declared a "Strategic Project" under the (refer
to the Company's ASX/AIM releases dated 26/25 March 2025) ("Cinovec Declared a
Strategic Project Under EU Critical Raw Materials Act"), the final approval of
financial support for the Project under the JTF represents a further important
confirmation of support from European and Czech institutions.

The terms and conditions of the JTF grant will be detailed in the contract
between the grant provider (Czech Ministry of Environment) and the
beneficiary, the Cinovec Project holding company, Geomet s.r.o.

The contract will detail milestones, including the EIA and construction
permitting timetable, as well as the conditions for advance payments and
reimbursement of costs incurred by the beneficiary. The conditions will also
include how the Project's progress will be reported to the Czech Ministry of
Environment which is the managing authority for JTF projects.

Keith Coughlan, Executive Chairman, commented: "We welcome this final
confirmation of the significant JTF grant. The grant funding will be utilised
to fast track a number of critical path items with regards to the Cinovec
Project. This confirmation builds on recent project momentum, and is another
clear indicator of the support the European Union and the Czech government is
willing to provide to assist in getting Cinovec into production in the
timeliest manner possible."

Strategic Project Status

The declaration of the Cinovec Project as a Strategic Project under the CRMA
represents confirmation of the advanced stage of development of the Project.
The Definitive Feasibility Study ("DFS") for the Project is progressing
towards completion in mid-2025, with the EIA to be completed and submitted for
approval by the end of 2025. It is expected that the Czech Ministry of
Environment will approve the EIA by mid-2026, with final construction
permitting expected to follow within the required time frame of 24 months as
set out in CRMA.

Being named a Strategic Project means that the project is considered highly
important for ensuring a secure and sustainable supply of critical raw
materials in Europe. Such projects must have a credible timeframe and
production volumes and have to be implemented with the highest ESG
credentials. These projects are essential for the green and digital
transition, as well as for the resilience of the defence and aerospace
sectors. The Cinovec Project, comprising of the largest hard rock lithium
resource in the EU by far, is vital to achieve the EU's objectives on Climate
Change.

The principal benefits Strategic Project status brings are:

·      Simplified Bureaucracy

·      Accelerated Approval Processes

·      Access to Funding

·      Support for Innovative Technologies

·      Secured Market and Stability

·      Protection Against Geopolitical Risks

Strategic Deposit Designation

The designation of Cinovec as a "Strategic Deposit" for the purposes of the
Czech Construction Code (refer to the Company's ASX/AIM release dated 7 March
2025) ("Cinovec Declared a Strategic Deposit by Czech Government") is a major
step forward for the Project, enabling Geomet to obtain certain permits and
take actions to secure the development of the Project without undue delay.

 This designation helps accelerate permitting processes in the following
ways:

·      Expedited approval

·      Reduced administrative burden

·      Priority environmental impact assessment review

·      Use of exceptional procedures

Overall, this status will enhance the predictability and speed of permitting
processes, facilitating the timely extraction of raw materials critical for
energy security and industrial needs.

The designation as a Strategic Deposit under Czech law and for the purposes of
the Czech Construction Code is separate from and in addition to the
designation as a Strategic Project under the CRMA.

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
(https://protect.checkpoint.com/v2/r04/___http:/www.europeanmet.com___.Y3A0YTpzdGVpbnBhZzI6YzpvOjU1NTgwYmUyY2YxOGNkMjRjMzIzMTVkNTdmOGE5ZGEzOjc6M2I1ZDplYzIyOTUzN2U3MTRhYjRhNjAyNWQzYmU3NmQ4NzFmM2M2OTRjOTViNDI4YzUxNzcyMGYyZTk4ZmFlYmViMzA3OnA6RjpG)
or see full contact details at the end of this release.

BACKGROUND INFORMATION ON CINOVEC

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 53.3Mt at 0.48% Li(2)O,
Indicated Mineral Resource of 360.2Mt at 0.44% Li(2)O and an Inferred Mineral
Resource of 294.7Mt at 0.39% Li(2)O containing a combined 7.39 million tonnes
Lithium Carbonate Equivalent (refer to the Company's ASX/ AIM 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 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/ AIM 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 and the
fifth largest non-brine deposit in the world.

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
26/25 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).

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. It
confirmed the deposit is amenable to bulk underground mining (refer to the
Company's ASX/ AIM 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 at excellent recoveries.
In February 2023 DRA Global Limited ("DRA") was appointed to complete the
Definitive Feasibility Study ("DFS").

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 Hydroxide or 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)).

The economic viability of Cinovec has been enhanced by the recent push for
supply security of critical raw materials for battery production, including
the strong increase in demand for lithium globally, and within Europe
specifically, as demonstrated by the European Union's Critical Raw Materials
Act ("CRMA").

 

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 20.3
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 the announcement 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 has provided his prior
written consent to the inclusion in this report 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 has provided his prior
written consent to the inclusion in this report 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 has provided his prior written consent to the inclusion
in this report 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 Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement 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

WEBSITE

A copy of this announcement is available from the Company's website at
www.europeanmet.com/announcements/
(https://protect.checkpoint.com/v2/r04/___http:/www.europeanmet.com/announcements/___.Y3A0YTpzdGVpbnBhZzI6YzpvOjU1NTgwYmUyY2YxOGNkMjRjMzIzMTVkNTdmOGE5ZGEzOjc6NGQxZTpiMTA1NjEyYjA5NDUwOTAyNDU3MWZlMTA4NmVkMjk4NWVlMDFhMjAxYzExMWY3YzM3ZTJhYzgzYmFhYmYwNzUyOnA6RjpG)
.

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

 Henko Vos, Company Secretary                    Tel: +61 (0) 400 550 042

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

 Zeus Capital Limited (Nomad & Broker)

 James Joyce / Darshan Patel/ Gabriella Zwarts   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 1 Advisors (Financial PR - Aus)

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

 

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