European Metals Holdings Ltd (LON:EMH, ASX:EMH) said it believed the Czech state-owned power utility is close to completing due diligence before making its agreed investment in the company.
EMH, which first announced agreement in July that could see CEZ Group become its largest shareholder and co-development partner for the Cinovec lithium tin project, also said it had A$1.03mln cash in the bank at the end of September.
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In August the company raised a gross £750,000 via a share placing to progress Cinovec development and continue talks with CEZ and potential offtake partners.
CEZ, which is 70% owned by the Czech state, in July conditionally agreed to provide a €2mln finance facility by way of a convertible loan.
Cinovec, which is 60 miles from Prague on the German border and 90km from Volkswagen’s Zwickau electric vehicle plant that is due to come on stream next month, is calculated to host to the largest lithium resource in Europe and one of the biggest untapped tin deposits in the world.