REG - European Metals Hldg - European Metals Finalises A$3.5m Placement

European Metals HoldingsAnnouncement

Wed 08:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260121:nRSU7554Pa&default-theme=true

RNS Number : 7554P  European Metals Holdings Limited  21 January 2026

 

European Metals Finalises A$3.5m Placement

European Metals Holdings Limited (ASX and AIM: EMH, OTCQX: EMHXY/EMHLF)
("European Metals" or the "Company") is pleased to announce that it has
received firm commitments for a placement to raise approximately A$3.46
million (before costs) to high net worth and institutional clients of Barclay
Wells and Zeus Capital (Placement). Placement proceeds will be applied towards
ongoing development of the Cinovec Lithium Project and general working
capital.

 

Executive Chairman Keith Coughlan said:

 

"We are delighted with the support received for the Placement, and would like
to thank our existing shareholders for their support and in turn welcome a
number of new investors to the register.

 

European Metals looks forward to updating the market on progress following the
release of the Company's compelling Definitive Feasibility Study, with
discussions advancing for the progression of project financing with additional
grant funding, commercial lenders and potential strategic partners, moving
toward the completion of off-take agreements."

 

Placement details

 

The Placement will be settled via the issue of approximately 10.8 million
ordinary fully paid shares (Shares) at an issue price of A$0.32 per Share to
raise A$3.46 million (before costs).

 

The issue price of $0.32 represents a 13.5% discount to the Company's last
traded price on 20 January 2026 (A$0.37).

 

The Shares and DIs are expected to settle on Wednesday, 28 January 2026 and
commence trading on a normal basis on Thursday, 29 January 2026. New Shares
issued under the Placement will rank equally with existing Shares on issue.

 

The Placement is being conducted pursuant to the Company's existing placement
capacity under ASX Listing Rule 7.1A.

 

Barclays Wells acted as Lead Manager and Bookrunner to the Placement.

 

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 1 Advisors (Financial PR - Aus)

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

 

 

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOEAKDBPOBKKBDB



            Copyright 2019 Regulatory News Service, all rights reserved