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European Metals boosted by option deal on processing technology at Cinovec

Published: 12:32 03 May 2016 BST

Pictured is ore from the Cinovec project in Czech Republic, for which the firm now has a new processing option..
Pictured is ore from the Cinovec project in Czech Republic

Shares in lithium explorer European Metals Holdings Ltd (LON:EMH, ASX:EMH) shot up almost 12% as its Cinovec deposit in Czech Republic got a boost as the company struck an option deal to use a processing technology owned by Lepidico Limited.

The L-Max technology was previously used successfully in the scoping study on Cinovec ore, which saw battery grade lithium carbonate produced.

Key results from using the technology was that 99.5% of lithium recovered from concentrate via leaching and also that a by-product of potassium sulphate was successfully precipitated.

The estimated operating cost in the scoping study was put at US$1,500 per tonne of lithium carbonate produced - after sulphate of potash credit.

European Metals' managing director Keith Coughlan told investors: "We are very pleased to have entered into this agreement with Lepidico giving us the option to conduct further work with them using the L-Max technology.

"Our previous experience with the technology has been very encouraging, as have all our dealings with Lepidico.

"This brings to four the total number of processing alternatives now available to the company. We will continue to work with Lepidico and Dorfner Anzaplan to determine the most economic process for the Cinovec project during the PFS period."

Under the option, European Metals will pay a license option fee of $20,000.  The  term is for a year, which may be extended for a further 12 months for a further fee of $25,000.

Upon exercise of option, the firm must make an additional payment of $30,000 plus issue 890,215 CDI's of the company.

It must also pay Lepidico a gross product royalty of 2% of all sales relating to lithium chemicals (and other by products) produced using the L-Max technology.

Rare Earth Minerals owns a 19.8% stake in European Metals.

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