European Metals Holdings Limited (LON:EMH) has issued an update on activities at its Cinovec lithium and tin project in the Czech Republic for the three months ended 31 December.
The AIM-listed firm said during the period shareholders had approved a subscription of around €34mln by Czech electricity conglomerate CEZ Group for a 51% stake in Geomet, European Metals’ Czech subsidiary and the owner of the Cinovec licences.
The company said it was currently working with CEZ to satisfying due diligence and several other conditions to approve the transaction.
Post-quarter, the company said it had raised net proceeds of around £344,236 (A$675,000) in a share placing to UK investors, the proceeds of which will be used to progress development at Cinovec and also finalise the CEZ investment.
In a separate quarterly cashflow report, the company reported it had ended the three months with cash and cash equivalents of £41,818 (A$82,000), with cash outflows for the next quarter expected to be £150,444 (A$295,000).
In early trading on Friday, shares in European Metals were 0.7% lower at 15p.