European Metals gains short-term funding for Cinovec

PERTH (miningweekly.com) – ASX-listed European Metals has reported a maiden ore reserve of 34.5-million tonnes, grading 0.65% lithium oxide for its Cinovec lithium/tin project, in the Czech Republic.

MD Keith Coughlan said on Tuesday that the conversion of 34.5-million tonnes of mineral resource to ore reserve was facilitated by the recently published prefeasibility study (PFS).

“This is another significant step in the development of the largest lithium resource in Europe.”

An April PFS confirmed that the Cinovec project could deliver some 20 800 t/y of battery grade lithium carbonate, over a mine life of 22 years, at a capital investment of A$393-million.

Some 1.7-million tonnes a year of ore will be mined and crushed in the underground operation, prior to being stockpiled to feed the plant.

Meanwhile, European Metals has secured A$2-million interim funding from investor 6466 Investments, to maintain momentum in developing the project.

The funds can be drawn down over the next 12 months as required, and any funds drawn down will be converted into chess depository interests in the company at a 10% discount to the ten-day volume-weighted average price in the company’s securities.

The funds will be used in the preparation of the definitive feasibility study, to further drilling and for general working capital.

European Metals said it was actively engaging with potential strategic partners in Europe with regards to the funding and development of the Cinovec project.

Meanwhile, the company also announced the appointment of  Richard Pavlik as an executive director. The 54-year old is the general manager and a director of European Metals' wholly owned Czech subsidiary, Geomet. Pavlik is the former chief project manager and adviser to the CEO at Czech coal producer OKD.