logo-loader
viewEuropean Metals Holdings

European Metals agrees terms for sale of majority of Cinovec to state-owned CEZ

If the deal is concluded the money would fund Cinovec through to a construction decision.

European Metals Holdings -
European Metals will use the funds received from CEZ to complete the Definitive Feasibility Study at Cinovec

European Metals Holdings Limited (LON:EMH) has conditionally agreed to sell a majority stake in the Cinovec lithium project in the Czech Republic for €34mln.

Local power utility CEZ has offered to buy a 51% stake in Geomet, the subsidiary that owns the project, and to become its strategic partner.

Keith Coughlan, EMH’s managing director, said if the deal is concluded the money would fund Cinovec through to a construction decision.

READ: Potential Investment from CEZ Group could fund Cinovec through to a decision to mine. But is it a good deal?

CEZ intends to develop several projects in areas of energy storage and battery manufacturing in the Czech Republic and in Central Europe and is an ideal partner for Cinovec, said Coughlan.

The state-owned Czech firm has been carrying out due diligence on Cinovec since July and EMH has granted a period of exclusivity until the end of March next year for it to formalise its proposals.

European Metals will use the funds received from CEZ to complete the Definitive Feasibility Study at Cinovec, all of the permitting processes and advance the project to an investment decision.

Quick facts: European Metals Holdings

Price: 11.25 GBX

AIM:EMH
Market: AIM
Market Cap: £17.07 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of European Metals Holdings named herein, including the promotion by the Company of European Metals Holdings in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

European Metals reaches final agreement with CEZ for Cinovec investment

European Metals Holdings Limited's (LON:EMH) Keith Coughlan caught up with Proactive London's Andrew Scott following the news they've reached a final agreement for Czech state power utility CEZ to take a 51% stake in the Cinovec lithium project. The amended terms will see CEZ pay €29.1mln for...

1 day, 4 hours ago

2 min read