TIDMEMH
RNS Number : 3629C
European Metals Holdings Limited
18 June 2021
For immediate release
18 June 2021
EUROPEAN METALS HOLDINGS LIMITED
EMH ADS TO TRADE IN THE U.S.
HIGHLIGHTS
-- EMH expands presence in the U.S. with Deutsche Bank appointed
as the depositary bank for EMH's American Depositary Shares
(ADS)
-- EMH and Deutsche Bank establishing a sponsored Level 1 ADS
program with each ADS representing 20 ordinary EMH shares
-- ADSs expected to commence trading on the OTC Market as a
member of the Nasdaq International Designation during July 2021
under the ticker symbol "EMHYY"
-- Extensive marketing campaign to begin to new U.S. investors,
further build relationships with U.S. banks, green energy funds and
institutional investors and brokers
-- Prague Listing to be postponed at suggestion of Prague Stock Exchange
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ:
ERPNF) ("EMH", "European Metals" or the "Company") is pleased to
advise it has appointed one of the world's leading depositary
banks, Deutsche Bank, as the depositary bank for the issue of its
American Depositary Shares ("ADS").
European Metals will work with Deutsche Bank to create a
sponsored Level 1 ADS program with each ADS issued under the
program representing 20 ordinary shares of the Company. It is
intended that EMH's ADS will commence trading on the OTC Market as
a member of the Nasdaq International Designation under the ticker
symbol "EMHYY" during July 2021 which is expected to attract
institutional and fund investors who are restricted from trading in
non US stocks.
The Nasdaq International Designation and Level 1 ADS program in
the United States will enable new and existing U.S. investors to
trade EMH's ADS electronically 'commission free' on most retail
trading platforms such as Charles Schwab, E-Trade, TD Ameritrade in
U.S. dollars and during normal U.S. trading hours. European Metals'
Certificates of Depositary Interest ("CDIs"), representing ordinary
shares and ordinary shares in the Company, will continue to trade
on the ASX and AIM, a market of the London Stock Exchange,
respectively, under the symbol "EMH" as will the shares with the
tickers ERPNF and EMHLF currently trading in the USA.
With the establishment of the Level 1 ADS program, the Company
will now begin an extensive marketing campaign to new investors
throughout the United States and will continue to build
relationships with U.S. banks, green energy funds and institutional
investors and brokers that have experience and knowledge of the
lithium and "clean-technology" sectors.
EMH Executive Chairman Keith Coughlan said: "Launching an ADS
program in the United States signals a key milestone as we drive
development forward at our Cinovec Project and boost visibility
among U.S. investors. We will begin an extensive U.S. marketing
campaign with the ADSs and Nasdaq International Designation to
enable investors to trade the ADS electronically 'commission free'
on most retail trading platforms such as Charles Schwab, E-Trade,
TD Ameritrade in U.S. dollars, during U.S. trading hours."
"I have been very pleased with the initial feedback from our US
marketing efforts and this listing is consistent with our strategy
to expand our presence in the biggest capital markets globally. Our
focus will be to attract US and Global green energy funds and
institutional investors who recognise the significance of the
Cinovec Project, its ESG principles and potentially low carbon
footprint. We continue to be highly encouraged by the results of
our Definitive Feasibility Study and look forward to updating the
market on project development plan."
ABOUT NASDAQ INTERNATIONAL DESIGNATION
Launched in December 2015, the Nasdaq International Designation
program is designed for non-U.S.-based companies that have level 1
American Depositary Shares that trade in the over-the-counter (OTC)
market.
The program offers a unique partnership with Nasdaq that
provides member companies with Nasdaq's robust visibility offering
which allows for greater access to US investors, and can
potentially increase liquidity. The Nasdaq International
Designation is home to a diverse range of companies in innovative
industries across the globe.
The total market capitalisation of the Nasdaq International
Designation program member Companies exceeds $150 billion and
program members hail from Australia, Japan, Germany, Brazil,
Canada, the U.K. and the Netherlands. As participants in a
comprehensive program, companies receive a full service offering
that includes investor relations tools and services, as well as
access to Nasdaq's visibility assets to enhance communication with
the investment community. In the past year, members of the program
were invited to the Nasdaq MarketSite with the opportunity to
amplify their brand activities through different channels.
ABOUT NASDAQ
Nasdaq is a leading global provider of trading, clearing,
exchange technology, listing, information and public company
services. Through its diverse portfolio of solutions, Nasdaq
enables customers to plan, optimize and execute their business
vision with confidence, using proven technologies that provide
transparency and insight for navigating today's global capital
markets.
As the creator of the world's first electronic stock market,
Nasdaq has technology that powers more than 89 marketplaces in 50
countries, and 1 in 10 of the world's securities transactions.
Nasdaq is home to 3,800 total listings with a market value of $11.0
trillion.
ABOUT DEUTSCHE BANK
As one of the world's leading depositary banks, Deutsche Bank's
depositary receipt business is dedicated to providing excellent
service for companies with American or global depositary receipt
programs. Deutsche Bank has a wealth of experience in establishing
and maintaining depositary receipt programs, with specialists in
Hong Kong, London, Moscow, Mumbai, New York and Sydney providing
local knowledge and expertise across different time zones.
Their dedicated client management team offers clients a single
point of contact for all program related issues. Deutsche Bank's
depositary receipts team is part of a group of over 1,100
professionals who specialise in providing trust, paying agency and
administrative solutions to corporates, financial institutions and
government agencies worldwide.
UPDATE ON PRAGUE LISTING
The Company has been informed by the Prague Stock Exchange that,
as a result of the Company being a pre-revenue company, at this
stage of EMH's development they did not consider it appropriate for
EMH to list on the Prague Stock exchange. The Prague Stock Exchange
indicated that they were open to further discussion about the
listing of EMH shares on the Prague Stock Exchange but that
reflecting relevant regulatory, legal and technical aspects on
their side, it was their suggestion to postpone the listing process
until the later stages of the Cínovec Project development.
For the avoidance of doubt, European Metals' Certificates of
Depositary Interest ("CDIs"), representing ordinary shares and
ordinary shares in the Company, will continue to trade on the ASX
and AIM, a market of the London Stock Exchange, respectively, under
the symbol "EMH".
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/James Sinclair-Ford Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR
- Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman .
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project. Geomet
s.r.o. is owned 49% by European Metals and 51% by CEZ a.s. through
its wholly owned subsidiary, SDAS. Cinovec hosts a globally
significant hard rock lithium deposit with a total Indicated
Mineral Resource of 372.4Mt at 0.45% Li2O and 0.04% Sn and an
Inferred Mineral Resource of 323.5Mt at 0.39% Li2O and 0.04% Sn
containing a combined 7.22 million tonnes Lithium Carbonate
Equivalent and 263kt of tin reported 28 November 2017 (Further
Increase in Indicated Resource at Cinovec South). An initial
Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn reported
4 July 2017 (Cinovec Maiden Ore Reserve - Further Information) has
been declared to cover the first 20 years mining at an output of
22,500tpa of lithium carbonate reported 11 July 2018 (Cinovec
Production Modelled to Increase to 22,500tpa of Lithium
Carbonate).
This makes Cinovec the largest hard rock lithium deposit in
Europe, the fourth largest non-brine deposit in the world and a
globally significant tin resource.
The deposit has previously had over 400,000 tonnes of ore mined
as a trial sub-level open stope underground mining operation.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and an IRR of 28.8%
and confirmed that the Cinovec Project is a potential low operating
cost, producer of battery grade lithium hydroxide or battery grade
lithium carbonate as markets demand. It confirmed the deposit is
amenable to bulk underground mining. Metallurgical test-work has
produced both battery grade lithium hydroxide and battery grade
lithium carbonate in addition to high-grade tin concentrate at
excellent recoveries. Cinovec is centrally located for European
end-users and is well serviced by infrastructure, with a sealed
road adjacent to the deposit, rail lines located 5 km north and 8
km south of the deposit and an active 22 kV transmission line
running to the historic mine. As the deposit lies in an active
mining region, it has strong community support.
The economic viability of Cinovec has been enhanced by the
recent strong increase in demand for lithium globally, and within
Europe specifically.
There are no other material changes to the original information
and all the material assumptions continue to apply to the
forecasts.
BACKGROUND INFORMATION ON CEZ
Headquartered in the Czech Republic, CEZ a.s. is an established,
integrated energy group with operations in a number of Central and
Southeastern European countries and Turkey. CEZ's core business is
the generation, distribution, trade in, and sales of electricity
and heat, trade in and sales of natural gas, and coal extraction.
CEZ Group has 33,000 employees and annual revenue of approximately
EUR 7.24 billion.
The largest shareholder of its parent company, CEZ a.s., is the
Czech Republic with a stake of approximately 70%. The shares of CEZ
a.s. are traded on the Prague and Warsaw stock exchanges and
included in the PX and WIG-CEE exchange indices. CEZ's market
capitalization is approximately EUR 10.08 billion.
As one of the leading Central European power companies, CEZ
intends to develop several projects in areas of energy storage and
battery manufacturing in the Czech Republic and in Central
Europe.
CEZ is also a market leader for E-mobility in the region and has
installed and operates a network of EV charging stations throughout
Czech Republic. The automotive industry in Czech is a significant
contributor to GDP and the number of EV's in the country is
expected to grow significantly in coming years.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
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END
MSCGPUMUQUPGUAR
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