European Metals Holdings Ltd (ASX:EMH) has raised $3 million from its largest shareholder, Rare Earth Minerals plc (LON:REM) via the combination of a placement and the exercise of options.
The placement will raise $2.6 million via the issue of 5 million CHESS Depositary Interests (CDI) at an issue price of $0.52 per CDI.
In addition, Rare Earth Minerals has notified its intention to exercise 2 million unlisted options which will result in a further $400,000 being raised by European Metals.
The issuance of the placement CDI’s and the option exercise will take Rare Earth Minerals’ interest in European Metals to 20.92%.
The funds raised will be utilised to further develop the Cinovec Lithium-Tin Project in the Czech Republic and complete the pre-feasibility study (PFS) for the project.
Cinovec is currently the largest lithium deposit in Europe and located in close proximity to multiple end-users.
The project contains a total resource of 5.7 million tonnes of lithium carbonate equivalent.
All aspects of the PFS are progressing positively, with a pre-production capital cost reduction of US$85 million announced last month.
The share price of European Metals has tripled its value since the beginning of 2016, last trading at $0.52.
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