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LONDON (Alliance News) - European Metals Holdings Ltd on Tuesday said it signed a licensing agreement option with Lepidico Ltd to utilise L-Max technology.
Managing Director Keith Coughlan said European Metals' previous experience with the technology has been very encouraging.
"This brings to four the total number of processing alternatives now available to the company," Coughlan said in a statement.
European Metals previously used the L-Max technology on Cinovec ore. The company owns the exploration rights to the Cinovec lithium-tin deposit in the Czech Republic.
Its latest move adds an additional option with regards to the metallurgical process route to be investigated as part of its current preliminary feasibility study.
European Metals will pay a license option fee of USD20,000 to European Metals. The term of the option is for 12 months, which may be extended by a further 12 months with the payment of an additional option fee of USD25,000.
Upon exercise of option, European Metals must make an additional payment of USD30,000 plus the issuance of 890,215 CDI's.
Under the licensing agreement, European Metals is required to pay Lepidico a gross product royalty of 2% of all sales relating to lithium chemicals, and other by products, produced using the L-Max technology.
Shares in European Metals were up 12% at 15.40 pence Tuesday shortly after the market open in London.
Rare Earth Minerals PLC, which owns a 19.8% stake in European Metals, said it was pleased that the company had signed the option agreement with Lepidico.
"This technology has already demonstrated excellent economic parameters for the project and we look forward to hearing further results from this work as well as the continued work with Dorfner Anzaplan, which is being in run parallel," Andrew Suckling, a non-executive director at Rare Earth Minerals, said in a statement.
Shares in Rare Earth Minerals were up 2.8% at 0.550p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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