4th Mar 2016 10:33
LONDON (Alliance News) - European Metals Holdings Ltd said Friday that it has raised AUD1.8 million through the placing of 13 million CREST Depositary Interests at a price of AUD0.135, representing around 15% of its current issued share capital.
As part of the placing, shareholder Rare Earth Minerals PLC has increased its holding in the company to 19.8%, by taking up an additional 7.9% stake in the company for GBP670,000 via the placing.
Shares in European Metals were up 13% at 8.22 pence in London. They closed in Australia at AUD0.155 Friday. Rare Earth Minerals was down 1.4% at 0.557 pence.
The funds raised will be used to further develop European Metals' 100% owned Cinovec lithium and tin project in the Czech Republic, and in particular to continue the drilling campaign at the project and upgrade its current inferred mineral resource.
"It is pleasing to raise this money from a small group of strategic shareholders, including our largest shareholder, London-listed Rare Earth Minerals, at such a small discount to market. The funds will enable us to complete an advanced drilling program designed to convert a significant portion of the existing resource to the indicated category which will form the basis of our preliminary feasibility study and assist with the marketing of the company's potential lithium supply to global battery manufactures," said European Metals Chief Executive Keith Coughlan in a statement.
"We have now built significant equity positions in major lithium deposits in both central Europe and northern Mexico, both these project have the potential to be large low cost producers supplying the fast growing lithium battery market," said Rare Earth Minerals Chairman Andrew Suckling.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
European Metals HoldingsRare Earth Metals