European Metals Holdings Limited (ASX:EMH) has successfully received firm commitments, including the backing of a major European green energy fund, for a placement to raise A$7.1 million to assist in the further development of the Cinovec Lithium Project, the largest hard rock lithium resource in Europe.
Executive Chairman, Keith Coughlan, said the Placement was very well supported, especially by Luxembourg-based green energy fund Thematica Future Mobility.
“We are very pleased to complete this capital raising at this time and to add cornerstone shareholders to our register who we believe will be very valuable to the company as we move into our full project funding.
“It is very pleasing in particular to welcome Thematica Future Mobility to the Company. Thematica is a specialist investor in the Electric Vehicle supply chain, based in Luxembourg. As such, Thematica recognizes the unique opportunity presented by investment in the Cinovec Project against a backdrop of unprecedented EU support.”
Thematica Future Mobility is a Luxembourg-based UCITS fund, with exposure to companies that are focused or will substantially benefit from the transition to clean and sustainable transportation and energy storage solutions. The fund invests in companies globally and across all market caps.
According toa Thematica representative, the strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future.
The European Raw Material Alliance (ERMA) has stated its ambition is to have 80% of lithium supply sourced locally – we see European Metals Holdings, that should reach final investment decision in early 2022 post the completion of a definitive feasibility study, as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target,” he said.
Cinovec is the largest hard rock lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource and is fully funded through to Final Investment Decision.
A Preliminary Feasibility Study indicated a return post tax NPV of USD1.108B and an IRR of 28.8% and confirmed that the Cinovec Project is a potential low operating cost, producer of battery grade lithium hydroxide or battery grade lithium carbonate as markets demand.