10th Jan 2020 10:28
(Alliance News) - European Metals Holdings Ltd on Friday said it has raised GBP350,000 through a share placing to UK investors at a price of 15.25 pence per share.
The 15.25p placing price is a 1.6% discount to the miner's Wednesday closing price. Shares in the firm, which controls the mineral exploration licences of Czech lithium-tin project Cinovec, were up 0.3% at 15.30 pence in London in morning trade on Friday.
In total, 2.3 million new shares in European Metals have been placed, both with new and existing investors, with funds from the placing to be put towards progressing Cinovec and finalising a proposed investment by CEZ Group in the project.
As announced in November, the planned investment would result in CEZ becoming a 51% shareholder in European Metals' Czech subsidiary and rights holder for Cinovec, paying around EUR34.1 million for the stake via a subscription in the subsidiary's shares.
The deadline for the CEZ deal is March 31, having already been extended by three months. The placing will let European Metals continue its development in light of the extension.
Managing Director Kieth Coughlan said: "Following the announcement of the three-month extension to the timeline of the proposed CEZ transaction, we have received further funding proposals from equity investors. The board felt it prudent to take the opportunity to strengthen the balance sheet whilst concluding these discussions.
"With the approval of shareholders now received at the recent EGM, we look forward to concluding the proposed investment by CEZ as we believe their participation in the project will be beneficial for all stakeholders."
By Anna Farley; [email protected]
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