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LONDON - European Metals Holdings Limited (ASX & AIM:EMH) has made significant advancements with its Cinovec Lithium Project in the Czech Republic, as detailed in its latest quarterly activities report. The project, deemed strategic under the European Union’s Critical Raw Materials Act (CRMA), is positioned to contribute to the EU’s lithium ion battery supply chain and reduce reliance on imported materials.
European Metals announced that the European Commission declared Cinovec a Strategic Project on March 26, 2025, under the CRMA, which was implemented in April 2024. This status is expected to facilitate financial support from European institutions and streamline the permitting process.
Earlier, on March 7, 2025, the Czech government designated Cinovec as a Strategic Deposit, simplifying and expediting the permitting process. This designation prioritizes the project for obtaining permits and approvals, reduces administrative burdens, and may allow for accelerated environmental impact assessment reviews and the use of exceptional procedures.
The company has explored scenarios to potentially increase the annual production of lithium chemicals from Cinovec, as indicated by a Concept Study released in December 2024 and clarified on January 31, 2025. While the economic viability based on these scenarios is yet to be determined, the increased production could leverage economies of scale, anticipated to be confirmed in the Definitive Feasibility Study (DFS) expected to be completed by mid-2025.
After the quarter ended, European Metals received final approval for a $36 million grant from the EU Just Transition Fund (JTF) for the Cinovec Project, contingent on the submission and approval of the project’s Environmental Impact Assessment by specified deadlines.
As of March 31, 2025, the company reported cash inflows of $1.487 million and a total cash balance of $4.3 million, with approximately $239,000 paid to related parties for director salaries, consultancy fees, and other related costs.
The Cinovec Project, owned 49% by European Metals and 51% by CEZ a.s. through its subsidiary, SDAS, is recognized as the largest hard rock lithium deposit in Europe. It has the potential to play a pivotal role in the EU’s transition to a low-carbon economy and the development of electric mobility and renewable energy storage.
This report is based on a press release statement.
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