(Alliance News) - European Metals Holdings Ltd on Monday said its Cinovec project in Czech Republic has been approved as a strategic project for the country's Usti region by the EU's 'Just Transition" fund, or JTF, making it eligible for EU funding.
European Metals is a mineral exploration and development company focused on the Cinovec lithium-tin project for the production of batteries for electric vehicles.
The company said the total amount allocated to Czech Republic by the EU's Just Transition fund was about EUR1.64 billion, with the Usti region in the north-west of the country receiving around EUR632 million, or around 39%. European Metals added that the funds allocated in the first call from the fund totals about EUR300 million, cautioning that there can be no certainty that Cinovec will receive EU funding.
"The company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the project," it said.
Executive Chair Keith Coughlan said: "This approval provides further evidence of strong support from the Czech government and the European Union and the Europe-wide recognition of the critical part which the Cinovec project will play in enabling the EU to reach its stated goals of lithium self-sufficiency by 2030. The proposed grants from the Just Transition Fund could play an important part in accelerating the development of the Cinovec project.
"For example, the initial entry into the deposit via twin declines and ancillary road network at the proposed Dukla site are likely to be early-stage beneficiaries of this funding. This could reduce the time until first ore is produced by the Cinovec project post final investment decision."
European Metals Holdings shares rose 11% to 41.65 pence each on Monday morning in London.
By Tom Budszus, Alliance News reporter
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European Metals Holdings (EMH)