28th Jul 2020 13:33
(Alliance News) - European Metals Holdings Ltd on Tuesday said a partnership agreement for the Cinovec lithium project in the Czech Republic has been signed with a EU body.
Shares in European Metals were up 24% at 18.95 pence in London in afternoon trading.
A value-added services agreement has been signed with KIC InnoEnergy SE, the principal facilitator and organiser of the European Battery Alliance, and Geomet sro. Geomet controls the mineral exploration licenses awarded by the Czech state over Cinovec and is owned 49% by European Metals and 51% by CEZ as.
The European Battery Alliance, meanwhile, was initiated by the European Commission in 2017 with the goal of creating "a competitive and sustainable battery cell manufacturing value chain in Europe".
Cinovec is a joint venture between CEZ and European Metals. It was recently funded to the tune of around EUR29 million, which will take the project through to construction decision.
The purpose of the KIC InnoEnergy financing agreement is to support construction financing and commercialisation of Cinovec - which is "the largest hard rock lithium deposit in Europe", according to European Metals.
European Metals noted last week's EU approval of the Green Stimulus Plan, which involves investing over EUR500 billion in a climate change plan that includes renewable energy and electric vehicles. This is promising for the mine, as lithium is used in electric vehicle batteries.
Executive Chair Keith Coughlan said: "European Metals and its development partner, CEZ, look forward to receiving support from EIT InnoEnergy and working together closely with their industrial and financial partners to deliver production at Cinovec, and contribute to a sustainable supply chain for a world leading centre for [electric vehicle] development and manufacture in Europe.
"Cinovec is the largest hard rock lithium resource in Europe and is strategically located to produce lithium in Europe for Europe. The requirement for locally sourced raw materials for the e-mobility movement has become more apparent during Covid-19, and Cinovec is well positioned in close proximity to Europe's manufactures. Over the coming months we look forward to commencing the DFS work programmes, and subsequent permitting and construction of Cinovec."
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
European Metals Holdings