REG - European Metals Hldg - DRA Global appointed to complete DFS for Cinovec

European Metals HoldingsAnnouncement

02/02/2023 07:01

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RNS Number : 6649O  European Metals Holdings Limited  02 February 2023

For immediate release

 

2 February 2023

EUROPEAN METALS HOLDINGS LIMITED

 

DRA GLOBAL APPOINTED TO COMPLETE

DEFINITIVE FEASIBILITY STUDY FOR CINOVEC

 

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX: EMHXY, ERPNF and
EMHLF) ("European Metals" or the "Company") is pleased to announce that DRA
Global Limited ("DRA") has been appointed to complete the Definitive
Feasibility Study ("DFS") for the Cinovec project in the Czech Republic.

With over 30 years' experience in the development and execution of projects,
DRA is a recognised leader in the delivery of lithium projects globally.

DRA has the necessary capacity, expertise and track record to deliver the
Cinovec DFS in a timely and efficient manner and will be working to build on
all of the optimisation work that the Cinovec team completed over the course
of 2022 with a view to completion of the DFS in  Q4 2023.

DRA's appointment for this vital piece of project development work is
testament to both the Company's and its joint-venture partner CEZ s.a.
commitment to, and the tremendous prospectivity and value of, the Cinovec
Project. The Cinovec Project's in-house team will work closely with DRA to
develop and finalise the DFS.

Executive Chairman Keith Coughlan said:

"We are pleased to have secured a company of DRA's calibre, with a proven
track record of delivering critical pieces of work like the Cinovec DFS in a
timely and efficient manner.

 "We will be working closely with DRA over the coming period, and we are
excited by the positive outcomes that this DFS will provide. It is not
expected that this will delay the critical path of the Project, as during this
time the Company will be in the process of finalising permitting, offtake and
Project Finance matters.

"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 Czech 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."

"We are proud to be working with EMH on the Definitive Feasibility Study for
the impressive Cinovec Project. Our experience in Lithium spans the
Australian, African and Americas markets. We are excited to share this
knowledge with EMH to deliver the best results for their project," comments
James Smith, CEO of DRA Global.

DRA Global

DRA Global Limited (ASX: DRA | JSE: DRA) is a multi-disciplinary consulting,
engineering, project delivery and operations management group predominantly
focused on the mining and minerals resources sector. DRA has an extensive
global track record, spanning more than three decades and more than 7,500
studies and projects as well as operations, maintenance and optimisation
solutions across a wide range of commodities.

DRA has expertise in mining, minerals and metals processing and related
non-process infrastructure including sustainability, water and energy
solutions for the mining industry. DRA delivers advisory, engineering and
project delivery services throughout the capital project lifecycle from
concept through to operational readiness and commissioning as well as ongoing
operations, maintenance and shutdown services.

 

This announcement has been approved for release by the Board.

 

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, based upon the production of
29,386tpa of lithium hydroxide, 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 more than 28,000 employees and annual revenue
of approximately EUR 11.39 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 20.5
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 (http://www.europeanmet.com) .

ENQUIRIES:

 European Metals Holdings Limited             Tel: +61 (0) 419 996 333

 Keith Coughlan, Executive Chairman           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

 WH Ireland Ltd (Nomad & Joint Broker)

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

 (Corporate Finance)

 Harry Ansell (Broking)

 Panmure Gordon (UK) Limited (Joint Broker)   Tel:  +44 (0) 20 7886 2500

 John Prior

 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

 

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. The person who authorised for the release
of this announcement on behalf of the Company was Keith Coughlan, Executive
Chairman.

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