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(Alliance News) - European Metals Holdings Ltd on Friday said a Czech utility firm has agreed to invest in a lithium project in the country, though at a lower price than initially expected.
The company back in November said it signed a conditional agreement with CEZ Group for a potential partnership and signifiant investment in the Cinovec project.
Cinovec is a lithium/tin project located in the Krusne Hore mountains, which divide the Czech Republic from Germany. Should the agreement conclude as planned, CEZ will become a 51% shareholder in Geomet sro, European Metals' Czech subsidiary and rights holder for the Cinovec project. European Metals' holding will then reduce to 49%.
On Friday, European Metals said a final agreement with CEZ was reached.
Due to "current market conditions" the amount needed to attain the 51% stake was reduced to EUR29.1 million from the initially planned EUR34.1 million.
European Metals added: "The directors of the company believe that the revised terms provide sufficient funding for the next stage of the development of the project, setting it on sound footing to progress into production thereafter."
Cadence Minerals, which owns a 17% stake in European Metals, noted the announcement.
Shares in European Metals closed 22% lower at 11.48 pence each in London on Friday.
By Eric Cunha; ericcunha@alliancenews.com
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