UPDATE: European Metals And Cadence Minerals Report Cinovec Progress

(Alliance News) - Cadence Minerals PLC on Monday noted positive progress by investee European Metals Holdings Ltd at the Cinovec lithium and tin project in the Czech Republic.

Cadence owns 19% of the shares of AIM miner European Metals. Cadence Minerals shares were down 1.5% Monday at 0.14 pence each, with European Metals up 14% at 23.00p.

European Metals earlier Monday reported a more than doubling in the value of Cinovec. The net present value of the project is now USD1.11 billion, double the 2017 estimate, while the internal rate of return post-tax is now 37%, from 29% before.

European Metals sees annual production of battery-grade lithium hydroxide of 25,267 tonnes, with a total capital cost for the project over a 21-year mine life of USD482.6 million.

"This important update to the feasibility study has increased the project net present value and once again highlighted the strategic importance of the Cinovec project for the European lithium market," said Cadence Chief Executive Kiran Morzaria.

European Metals Managing Director Keith Coughlan said earlier Monday: "I am very pleased to report to shareholders on the completion of this update to our 2017 preliminary feasibility study for the Cinovec project which adds significantly to the already robust forecast economics for the project."

"Since demonstrating battery grade lithium hydroxide can be produced from zinnwaldite mineralisation we have worked with Hatch to update the flowsheet and engineering required to adapt our lithium carbonate producing flowsheet to one that converts battery grade lithium carbonate into lithium hydroxide."

"We have now confirmed the ability with our resource, which is the largest lithium resource in Europe, to produce either or both products in line with market requirements once in production," Coughlan continued.

"Cinovec is strategically located in central Europe in close proximity to the continent's vehicle manufacturers. With increasing demand for electric vehicles and the expected demands of grid storage capacity, the project is very well placed to supply the European lithium market for many decades."

The Cinovec project in located in the Krusne Hory mountains, on the border of Czech Republic and Germany, within a historic mining region dating back to the 1300s, the company said. Cinovec was previously mined between the 1940s and 1993.