REG - European Metals Hldg - Funding Pathway Secured to Complete Cinovec DFS

European Metals HoldingsAnnouncement

18/08/2025 08:00

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RNS Number : 6936V  European Metals Holdings Limited  18 August 2025

18 August 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.

European Metals Holdings Limited

("European Metals", "EMH", or "the Company")

Placement to raise AUD $3m, DFS Update and refinancing

Funding Pathway Secured to Complete Cinovec DFS; A$3m Placement and
Non-Dilutive Refinancing

European Metals Holdings Limited (ASX & AIM: EMH, OTCQX: EMHXY/EMHLF)
advises that Geomet a.s., the Cinovec project company ("Geomet"), has issued
a €11.0 million cash call (the "Cash Call") to fund completion of the
DFS. Under the project ownership structure, EMH's share is approximately
€5.39 million (approximately A$9.67 million) with Severočeské Doly
("CEZ") to contribute €6.61 million. The Cash Call is payable by 10
October 2025.

Highlights

·      €11.0m Geomet cash call issued to fund completion of the
Cinovec DFS; EMH share €5.39m (approximately A$9.67m), due 10 October
2025.

·      A$3.0m placement completed, proceeds applied to EMH's Cash Call
obligation and working capital.

·      Non-dilutive balance planned via refinancing CZK 121m
(approximately A$8.86m) Dukla loan and/or sale of surplus Dukla land.

·      DFS on track following additional test work indicating
potential reagent and waste reductions; with completion target of October
2025.

To support its payment obligation on the Cash Call, the Company has completed
a placement of approximately A$3.0 million (before costs) to high net worth
and institutional clients of Barclay Wells Ltd and Zeus Capital Limited.
Proceeds will be applied toward EMH's Cash Call payment and general EMH
working capital.

In parallel, EMH intends to refinance the CZK 121 million (~A$8.86 million)
Dukla loan that EMH advanced to Geomet in 2023 for the acquisition of land
at Dukla, originally contemplated as the site of the Lithium Chemical Plant.
Given the proposed plant relocation to Prunéřov, most Dukla land is no
longer required. Consistent with EMH's strategy to minimise shareholder
dilution, the Company is progressing refinancing and/or partial or full asset
sale options. Negotiations are advanced and EMH expects completion in
time to meet its Cash Call obligations.

Executive Chairman, Keith Coughlan, said: "The Geomet cash call is a key
step in completing the DFS and keeping Cinovec on its critical path. We have
acted quickly to secure A$3 million and are pursuing non-dilutive
funding for the bulk of the cash call via the Dukla loan refinance and
potential land sale. With additional test work indicating further flowsheet
improvements and potential reagent and waste reductions, we remain focused
on delivering the DFS in October 2025 and closing the value gap between
EMH's market capitalisation and the project's fundamentals."

Cinovec DFS update

DFS workstreams are progressing, with tunnel kiln evaluation, bulk
materials handling studies and additional roasting test work indicating
scope for reagent and waste reduction in the flowsheet. The DFS remains
targeted for completion in October 2025.

Capital Raise

The Company has raised gross proceeds of approximately A$3 million via the
placing of 18,750,000 new ordinary shares ("New Ordinary Shares") at a price
of A$0.16 per New Ordinary Share.

Funds raised to be utilised for EMH's Cash Call payment obligation and general
working purposes.

The Placing price represents a discount of 20% to the last ASX-traded price of
A$0.20 on 15 August 2025. The New Ordinary Shares being issued represent
approximately 8.3% of the enlarged issued ordinary share capital of the
Company after Admission of the New Ordinary Shares.

Share Issue

The Company expects to issue 18,750,000 New Ordinary Shares at A$0.16 per
share to raise approximately A$3 million, utilising the Company's existing
shareholder authorities and placement capacity under ASX listing rules 7.1 and
7.1A.

Settlement and dealings

Application has been made for the New Ordinary Shares to be admitted to
trading on ASX and AIM ("Admission") and it is expected that Admission will
become effective on or around Friday 22 August 2025. The New Ordinary Shares
will rank pari passu with the Company's existing issued Ordinary Shares.

Total Voting Rights

Following Admission of the New Ordinary Shares, European Metals will have
226,194,705 Ordinary Shares in issue with voting rights attached. European
Metal holds no shares in treasury. The figure of 226,194,705, may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in the Company, under the ASX Listing Rules or the
U.K. Financial Conduct Authority's Disclosure Guidance and Transparency Rules
("DTRs").

Trading on the Australian Security Exchange ("ASX")

As announced on 18 August 2025 and following today's announcement, the trading
halt on the Company shares on ASX has now been lifted.

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

 

This announcement is authorised for release to the market by the Board of
Directors

ENQUIRIES:

 

 European Metals Holdings Limited

 Keith Coughlan, Executive Chairman              Tel: +61 (0) 419 996 333

                                                 Email: keith@europeanmet.com

 Kiran Morzaria, Non-Executive Director          Tel: +44 (0) 20 7440 0647

 Sujana Karthik, Company Secretary               Tel: +61 (08) 6245 2050

                                                 Email: 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)                        Tel: +44 (0) 20 7138 3222

 Tim Blythe

 Megan Ray

 Chapter 1 Advisors (Financial PR - Aus)         Tel: +61 (0) 433 112 936

 David Tasker

 

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