TIDMEMH
European Metals Holdings Limited
18 May 2023
18 May 2023
Reach
European Metals Holdings Limited
("European Metals" or the "Company")
Czech PM visits Cinovec, signs key MoC with PM of Saxony
Highlights:
- Czech Republic Prime Minister, Petr Fiala, visits the globally
significant Cinovec Lithium Project
- PM Fiala signs Memorandum of Cooperation ("MoC") with Prime
Minister Kretschmer of the German state of Saxony to enhance
cooperation on strategic projects, including Cinovec.
European Metals Holdings Limited ( ASX & AIM: EMH, OTCQX:
EMHXY, ERPNF and EMHLF ) is pleased to advise Czech Republic Prime
Minister, Petr Fiala, has visited the Cinovec Project, which is a
globally significant lithium deposit and also sought to expedite
the development of significant projects, such as Cinovec.
Prime Minister Fiala has commented on the Cinovec project via
social media , which translates to:
"Lithium is a critical and key raw material. Cínovec is the
largest European deposit of this raw material. Thanks to this, the
Czech Republic has a unique opportunity to contribute to both its
own and European raw material security.
"We are on the threshold of a "lithium revolution" as the use of
lithium will grow significantly. As a country with a large share of
the automotive industry, it is important for us to support it and
capture current trends.
"We are offered a unique chance to build the entire chain from
mining to the production of electric cars. That is why we need
lithium and we are trying to build a battery factory, the so-called
gigafactory."
Prime Minister Fiala also commented on the MoC via social media
, which translates to:
"I believe that this memorandum will help our cooperation on the
development of the lithium deposit in Cínovec and, in the future,
the creation of the entire production chain for the production of
batteries for cars."
Prime Minister Petr Fiala (Left) and Pavel Cyrani, ČEZ
Vice-Chairperson of the Board of Directors (Right) at the Cinovec
project.
Following a visit to Cinovec, Mr Fiala continued across the
Czech border to the nearby German city of Dresden, signing a
Memorandum of Cooperation ("MoC") on the implementation of projects
of strategic importance with Saxon Prime Minister Michael
Kretschmer.
The MoC strengthens cooperation between the states on raw
materials, energy and fuel security, with a particular emphasis on
lithium, given the strategic location of the Cinovec lithium
deposit on the Saxon-Czech border.
Prime Minister Fiala has continued to highlight the importance
of lithium development in the Czech Republic and it is anticipated
the MoC will further expedite the regulatory and development
pathway of Cinovec.
Commenting on the enhanced government support European Metals
Executive Chairman Keith Coughlan said:
"The recent visit by Prime Minister Fiala and the subsequent
Memorandum of Cooperation between the Czech Republic and the state
of Saxony are highly significant. These developments highlight the
strategic importance of our project to the region and to the
broader European Union. With increased recognition of the
importance of Cinovec, EMH anticipates further acceleration in
support throughout the project's development pathway."
This announcement has been approved for release by the CEO.
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.
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 has
been granted a preliminary mining permit by the Ministry of
Environment and the Ministry of Industry. The company is owned 49%
by EMH and 51% by CEZ a.s. through its wholly owned subsidiary,
SDAS. Cinovec hosts a globally significant hard rock lithium
deposit with a total Measured Mineral Resource of 53.3Mt at 0.48%
Li(2) O and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at
0.44% Li(2) O and 0.05% Sn and an Inferred Mineral Resource of
294.7Mt at 0.39% Li(2) O and 0.05% Sn containing a combined 7.39
million tonnes Lithium Carbonate Equivalent and 335.1kt of tin (
refer to the Company's ASX release dated 13 October 2021) (Resource
Upgrade at Cinovec Lithium Project).
An initial Probable Ore Reserve of 34.5Mt at 0.65% Li(2) O 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 ( refer to
the Company's ASX release dated 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 fifth 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.
On 19 January 2022, EMH provided an update to the 2019 PFS
Update, conducted by specialist independent consultants, which
indicates a post-tax NPV of USD1.938B and a post-tax IRR of 36.3%
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 (refer to the Company's ASX
release dated 19 January 2022) ( PFS Update delivers outstanding
results ). 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
South-eastern European countries and Turkey. CEZ's core business is
the generation, distribution, trade in, and sales of electri city
and heat, trade in and sales of natural gas, and coal extraction.
CEZ Group is one of the ten largest energy companies in Europe, has
28,000 employees and annual revenue of approximately EUR 9.97
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 17.7 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 the Czech Republic is a
significant contributor to GDP, and the number of EV's in the
country is expected to grow significantly in the coming years.
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
Shannon Robinson, Company Secretary Tel: +61 (0) 418 675 845
Email: shannon@europeanmet.com
WH Ireland Ltd (Nomad & Broker)
James Joyce/Darshan Patel Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell (Broking)
Panmure Gordon (UK) Limited (Joint
Broker) Tel: +44 (0) 20 7886 2500
John Prior
Hugh Rich
James Sinclair Ford
Harriette Johnson
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
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END
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