The Pick Magazine - Issue 17 - April 2021

Page 13

Cashed-up European Metals advances Cinovec


ith cash in the kitty and the backing of a major European green energy fund, European Metals Holdings (ASX: EMH) is in a strong position to aggressively develop the largest hard rock lithium

resource in Europe.

In February, EMH raised A$7.1 million before costs via a private placement to fund further development of the Cinovec project a globally significant hard rock lithium deposit in Czech Republic and within 250km of a large number of existing or proposed end users of battery grade lithium chemicals. Importantly, EMH attracted substantial support from Luxembourg-based green energy fund Thematica Future Mobility who threw in a $5 million contribution. Thematica Future Mobility is a UCITS fund with exposure to companies that are focused or will substantially benefit from the transition to clean and sustainable transportation and energy storage solutions. The fund invests in companies globally and across all market caps.

“It is very pleasing in particular to welcome Thematica Future Mobility to the Company,” EMH Executive Chairman Keith Coughlan said. “Thematica is a specialist investor in the Electric Vehicle supply chain, based in Luxembourg. As such, Thematica recognises the unique opportunity presented by investment in the Cinovec Project against a backdrop of unprecedented EU support.”

According to a Thematica representative, the strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future. “The European Raw Material Alliance (ERMA) has stated its ambition is to have 80% of lithium supply sourced locally – we see European Metals Holdings, that should reach final investment decision in early 2022 post the completion of a definitive feasibility study, as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target,” the representative said. 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 7.22Mt Lithium Carbonate Equivalent and 263kt of tin. An initial Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years of mining at an output of 22,500tpa of lithium carbonate or 25,267tpa of lithium hydroxide monohydrate. A Preliminary Feasibility Study indicated a return post tax NPV of US$1.108 billion and an IRR of 28.8% and confirmed Cinovec to be a potential low operating cost producer of battery grade lithium hydroxide or battery grade lithium carbonate as markets demand.

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