RCS - European Metals Hldg - Czech PM visits Cinovec, signs MoC with Saxony PM

European Metals HoldingsAnnouncement

18/05/2023 07:00

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RNS Number : 8596Z  European Metals Holdings Limited  18 May 2023

18 May 2023

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European Metals Holdings Limited

("European Metals" or the "Company")

Czech PM visits Cinovec, signs key MoC with PM of Saxony

Highlights:

-     Czech Republic Prime Minister, Petr Fiala, visits the globally
significant Cinovec Lithium Project

-     PM Fiala signs Memorandum of Cooperation ("MoC") with Prime Minister
Kretschmer of the German state of Saxony to enhance cooperation on strategic
projects, including Cinovec.

 

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX: EMHXY, ERPNF and
EMHLF) is pleased to advise Czech Republic Prime Minister, Petr Fiala, has
visited the Cinovec Project, which is a globally significant lithium deposit
and also sought to expedite the development of significant projects, such as
Cinovec.

Prime Minister Fiala has commented on the Cinovec project via social media
(https://twitter.com/P_Fiala/status/1658482790772649991) , which translates
to:

"Lithium is a critical and key raw material. Cínovec is the largest European
deposit of this raw material. Thanks to this, the Czech Republic has a unique
opportunity to contribute to both its own and European raw material security.

"We are on the threshold of a "lithium revolution" as the use of lithium will
grow significantly. As a country with a large share of the automotive
industry, it is important for us to support it and capture current trends.

"We are offered a unique chance to build the entire chain from mining to the
production of electric cars. That is why we need lithium and we are trying to
build a battery factory, the so-called gigafactory."

Prime Minister Fiala also commented on the MoC via social media, which
translates to:

"I believe that this memorandum will help our cooperation on the development
of the lithium deposit in Cínovec and, in the future, the creation of the
entire production chain for the production of batteries for cars."

 

Prime Minister Petr Fiala (Left) and Pavel Cyrani, ČEZ Vice-Chairperson of
the Board of Directors (Right) at the Cinovec project.

 

Following a visit to Cinovec, Mr Fiala continued across the Czech border to
the nearby German city of Dresden, signing a Memorandum of Cooperation ("MoC")
on the implementation of projects of strategic importance with Saxon Prime
Minister Michael Kretschmer.

The MoC strengthens cooperation between the states on raw materials, energy
and fuel security, with a particular emphasis on lithium, given the strategic
location of the Cinovec lithium deposit on the Saxon-Czech border.

Prime Minister Fiala has continued to highlight the importance of lithium
development in the Czech Republic and it is anticipated the MoC will further
expedite the regulatory and development pathway of Cinovec.

Commenting on the enhanced government support European Metals Executive
Chairman Keith Coughlan said:

"The recent visit by Prime Minister Fiala and the subsequent Memorandum of
Cooperation between the Czech Republic and the state of Saxony are highly
significant. These developments highlight the strategic importance of our
project to the region and to the broader European Union. With increased
recognition of the importance of Cinovec, EMH anticipates further acceleration
in support throughout the project's development pathway."

 

This announcement has been approved for release by the CEO.

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.

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 fifth
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 South-eastern
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 is one of the ten largest
energy companies in Europe, has 28,000 employees and annual revenue of
approximately EUR 9.97 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 17.7
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.

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

 Shannon Robinson, Company Secretary         Tel: +61 (0) 418 675 845

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

 WH Ireland Ltd (Nomad & Broker)

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

 (Corporate Finance)

 Harry Ansell (Broking)

 Panmure Gordon (UK) Limited (Joint Broker)

 John Prior                                  Tel: +44 (0) 20 7886 2500

 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

 

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