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Investing.com -- European Metals Holdings Limited (ASX:EMH) has been awarded a grant of up to €360 million (approximately £315 million) from the Czech government for its Cinovec Lithium Project, subject to completion of administrative processes.
The grant comes through the "Strategic Investments for a Climate-Neutral Economy" program administered by the Czech Ministry of Industry and Trade. The final amount may be less than the maximum €360 million.
Executive Chairman Keith Coughlan called this "a transformational milestone" representing "one of the largest direct project-level funding commitments to a critical raw materials project within the European Union."
The Cinovec Project has received significant recognition at both European and national levels. It was declared a Strategic Project by the European Commission under the EU Critical Raw Materials Act and designated a Strategic Deposit by the Czech Government. The project also previously received a $36 million grant from the EU Just Transition Fund.
The grant will be provided as a special-purpose subsidy paid in Czech koruna to reimburse documented eligible capital expenditure during project execution. Annual drawdowns will be aligned with the program’s project-status reporting cycle, with project completion required by December 31, 2032.
The Cinovec Lithium Project is controlled by Geomet s.r.o., which is 49% owned by European Metals and 51% by CEZ a.s. through its subsidiary SDAS. The deposit is the largest hard rock lithium deposit in Europe and the European Union, with a total Measured Mineral Resource of 53.3 million tonnes at 0.48% Li2O.
Next steps include completion of administrative processes for the formal grant-award decision, integration of the grant into the project’s finance structure, and coordination with the Ministry and CzechInvest on eligible-cost planning and reporting.
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