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European Metals shares up as it raises money for Cinovec site

Shares in European Metals headed north as it is set to raise A$1.75mln (£0.91mln) to advance its exciting Cinovec lithium and tin deposit in the Czech Republic.
European Metals shares up as it raises money for Cinovec site
European Metals shares shot up in early deals...

Shares in European Metals (LON:EMH, ASX:EMH) headed north as it is set to raise A$1.75mln (£0.91mln) to advance its exciting Cinovec lithium and tin deposit in the Czech Republic.

The firm has commitments for placing 13mln CDIs at A$0.135 a share.

Chief executive Keith Coughlan said: "It is pleasing to raise this money from a small group of strategic shareholders, including our largest shareholder, London listed Rare Earth Minerals plc, at such a small discount to market.

"The funds will enable us to complete an advanced drilling program designed to convert a significant portion of the existing resource to the indicated category which will form the basis of our Preliminary Feasibility Study and assist with the marketing of the company's potential lithium supply to global battery manufactures."

Cinovec  is the largest lithium deposit in Europe with the potential to be a low cost producer of lithium carbonate.

Earlier this month, the firm said results from two drill holes 500 metres apart revealed the “extent and consistency” of the mineralisation at the deposit.

One of the holes found 0.46% lithium oxide over 156 metres. The concentration rose to 0.63% over a 64 metre, higher grade section.

There were also zones that were enriched with tin and tungsten, which will provide a credit that will help pull down the overall cost of production when output begins in 2018.

The company is now planning a second programme, which will begin in the second quarter. It will target the shallow high-grade lithium zone that it believes will form the basis of the initial mining operation at Cinovec.

Shares added 17.24% to 8.50p.

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