REG - European Metals Hldg - Approval of up to EUR360M Czech Government Grant

European Metals HoldingsAnnouncement

28/11/2025 07:00

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RNS Number : 4224J  European Metals Holdings Limited  28 November 2025

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Approval of up to €360 Million

Czech Government Grant

Strong EU and National Support for the Cinovec Project

 

European Metals Holdings Limited (ASX and AIM: EMH, OTCQX: EMHXY/EMHLF)
("European Metals" or the "Company") is pleased to announce that, subject to
completion of administrative processes, Geomet s.r.o. has been informed it
has been awarded a grant of up to EUR 360 million (c.GBP 315 million) under
the "Strategic Investments for a Climate-Neutral Economy" programme (the
"Programme"), administered by the Ministry of Industry and Trade of the Czech
Republic for the development of the Company's flagship Cinovec Lithium Project
("Cinovec" or "Project").

 

The Programme is designed to support significant investments in the production
and expansion of equipment, key components, and critical raw materials
essential for the transition to a climate-neutral economy. The Programme is
aligned with the European Commission's Temporary Crisis and Transition
Framework and aims to accelerate economic development and investment in
strategic sectors.

 

The final amount of the monetary grant will be confirmed upon formal award and
may be less than the maximum amount of EUR 360 million.

 

Executive Chairman, Keith Coughlan, said:

 

"This is a transformational milestone for European Metals and the Cinovec
Project. The Czech Government's award of a grant of up to EUR 360 million
represents one of the largest direct project-level funding commitments to a
critical raw materials project within the European Union. Following the
previously detailed formal recognition of the Project, the approval of such a
significant financial contribution clearly demonstrates the support for and
importance of Cinovec in the future of European electromobility.

 

Coming at a time of renewed positive outlook for lithium and strong
geopolitical commitment to Critical Raw Material supply chain security, the
grant confirms the significant support at both Czech Government and European
Union levels."

 

Strong Support for Cinovec

The Cinovec Project has been formally recognised at both the European and
national levels as essential to Europe's energy transition. It was:

 

-       Declared a Strategic Project by the European
Commission under the EU Critical Raw Materials Act, granting access to
accelerated permitting, funding eligibility through institutions such as the
European Investment Bank, and "one-stop-shop" regulatory processes. 1 
(#_ftn1)

-       Designated a Strategic Deposit by the Czech Government,
simplifying and prioritising permitting under the Czech Construction Code. 2 
(#_ftn2)

-       Awarded a USD 36 million (CZK 800 million) grant from the EU
Just Transition Fund, confirming the EU's direct financial commitment to
progressing Cinovec. 3  (#_ftn3)

 

Collectively, these milestones demonstrate a unified European and Czech
Government commitment to bringing Cinovec into production as a secure,
sustainable source of lithium for the continent's battery and automotive
sectors.

 

Formal Grant Information

 

1. Summary of the Grant

·      Status of Grant: awaiting completion of administrative processes
to issue the formal grant-award decision.

·      Maximum grant allocation: Up to EUR 360 million, reflecting the
maximum aid intensity permitted under the Programme for qualifying regional
investments

·      Aid intensity: Up to 35% of eligible project costs for projects
located in the Moravia-Silesia, Central Moravia, North-East, or North-West
cohesion regions

·      Form of support: Special-purpose subsidy paid in Czech koruna
(CZK) to reimburse documented eligible capital expenditure ("capex") recorded
during project execution

·      Funding period: Annual drawdowns aligned with the Programme's
project-status reporting cycle, with project completion required no later than
31 December 2032

·      Decision authority: The Programme requires each project to be
individually approved by the Government of the Czech Republic following
assessment by the Ministry of Industry and Trade

 

2. Background on the Programme

The Programme supports major investments relating to:

1.     Production of equipment essential for the transition to a
climate-neutral economy, including batteries, solar panels, wind turbines,
heat pumps, electrolysers, and carbon capture technologies;

2.     Production of key components used in such equipment; and

3.     Production or processing of critical raw materials identified in
Regulation (EU) 2024/1252, including lithium.

 

The Programme's objective is to incentivise rapid and large-scale investments
that enhance European energy security, supply-chain resilience, and industrial
competitiveness.

 

3. Funding Mechanism and Drawdown Process

Once the formal grant decision is issued:

1.     Annual project-status reports must detail eligible costs, new jobs
created, procurement activities, and production-capacity development.

2.     Grant payments are made within 60 days of validated submission and
cannot exceed aid-intensity limits or annual caps.

3.     All supported assets must be maintained for five years
post-completion, and newly created jobs must also be maintained for at least
five years.

These requirements are standard under EU state-aid frameworks for large
industrial investments.

 

4. Next Steps

·      Completion of administrative processes to issue the formal
grant-award decision;

·      Integration of the grant into Cinovec's project-finance
structure;

·      Ongoing coordination with the Ministry and CzechInvest on
eligible-cost planning and reporting;

·      Finalisation of construction-readiness activities once remaining
approvals are completed.

 

The Company will provide further updates in accordance with ASX disclosure
requirements.

 

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.

 

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 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).

 

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 Pre-Feasibility Study
("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
59 km 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 is 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 EVs 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
announcements 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

 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/ 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 One Advisors (Financial PR - Aus)

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

 

 1  (#_ftnref1) Refer ASX announcement dated 26 March 2025 and AIM
announcement dated 25 March 2025

 2  (#_ftnref2) Refer ASX/AIM announcement dated 7 March 2025

 3  (#_ftnref3) Refer ASX/AIM announcement dated  28 April 2025

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