Last checked at 
(Alliance News) - European Metals Holdings Ltd said Wednesday it has raised GBP750,000 through a share placing, which will go towards developing the Cinovec lithium and tin project, as well as further discussions with potential off-take partners.
European Metals issued 4.2 million shares at a price of 18 pence per share, reflecting a 7.7% discount to the company's closing price on Tuesday at 19.50p.
Shares in the mineral explorer were down 1.5% at 19.20 pence on Wednesday.
Proceeds will allow European Metals to continue developing the project in the Czech Republic, while Czech utilities firm CEZ Group continues to conduct due diligence on the company and the project.
In mid-July, CEZ Group agreed to provide EUR2.0 million in financing through a convertible loan. The convertible loan has an interest rate of 7.5% per annum, compounded annually and a maturity date of this coming December 31.
Should the deal pass due diligence process, CEZ Group will be the largest shareholder in European Metals.
European Metals is currently in the process of planning its definitive feasibility study, particularly the planning of detailed engineering and further drilling enabled by the extension of the exploration permit.
"Following the announcement of the interest shown by CEZ Group, we have received further funding proposals from equity investors. As the CEZ financing can only be used for project development, the board felt it prudent to take the opportunity to strengthen the balance sheet whilst in offtake discussions and to fund ongoing company level costs," said Managing Director Keith Coughlan.
