European Metals advances Czech lithium project

LONDON - European Metals Holdings Limited (ASX & AIM: EMH) has reported progress on its Cinovec Lithium Project in the Czech Republic, including updates to its Definitive Feasibility Study (DFS) expected to be released in mid-2025. The company announced the selection of the former Prunéřov 1 Power Station (EPR1) site for its processing plant, citing infrastructure advantages and potential for future expansion.

The EPR1 site, spanning 36 hectares, provides established infrastructure for power, water, and rail access, which is anticipated to reduce construction and operational costs. The site’s existing rail links are expected to offer logistical benefits and may allow for increased processing capacity beyond the previously projected 2.25 million tonnes per annum (mtpa) run-of-mine ore (ROM) feed.

European Metals also revealed outcomes from a Concept Study suggesting the potential to increase annual lithium chemical production from the Cinovec Project. Although the increase remains conceptual, the company believes it could be achieved without expanding the mine’s surface footprint and without delaying the DFS.

The company’s cashflow report for the quarter ending 31 December 2024 showed no cash outflow for Cinovec associated costs, with a total cash balance of $3.5 million. Payments of approximately $237,000 were made to related parties for director salaries, consultancy fees, and other costs, with some expenses expected to be reimbursed by Geomet s.r.o., the project manager.

European Metals also changed its financial year-end from 30 June to 31 December to align with Geomet’s reporting period, a move aimed at improving financial reporting efficiency. In October 2024, the company issued performance rights and unlisted options under its Employee Inventive Plan.

The Cinovec Project, controlled by Geomet s.r.o. and partly owned by European Metals, is a significant hard rock lithium deposit, strategically located in Europe. The project is well-positioned to supply the growing European electric vehicle market, aligning with the EU’s focus on securing critical raw materials for battery production. This update is based on a press release statement from European Metals Holdings Limited.

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