Cadence Minerals PLC EMH - CEZ Cinovec Investment Approved (6806K)
April 23 2020 - 7:31AM
UK Regulatory
TIDMKDNC
RNS Number : 6806K
Cadence Minerals PLC
23 April 2020
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
European Metals (AIM: EMH) - CEZ Investment into Cinovec Project
Approved.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
the update today from European Metals Holdings Limited ("European
Metals" "EMH" or "the Company") that shareholders have today
approved at the General Meeting of the Company, the amended
arrangements for the investment of EUR 29.1 million (approximately
GBP 25.8 million) by CEZ a.s. ("CEZ") for a 51% equity interest in
Geomet, the Company's Czech subsidiary and holder of the Cinovec
licenses.
The investment of EUR 29.1 million will see the Cinovec project
fully funded to the decision to construct, paving the way for
Cinovec to become the first European Union producer of battery
grade lithium compounds from a local lithium resource.
The transaction is scheduled to complete on Monday, 27 April
2020, and the work program will begin immediately.
Cadence Minerals Holding in EMH
Cadence holds approximately 16% percent of the equity in
European Metals, which, through its wholly owned Subsidiary, Geomet
s.r.o. ("Geomet"), controls the mineral exploration licenses
awarded by the Czech State over Cinovec..
Cinovec Project - no current effect from COVID-19
With the completion of the agreement with CEZ, Geomet will now
immediately commence the Definitive Feasibility Study ("DFS") and
Front-End Engineering Design ("FEED") programmes of work.
The funds contributed by CEZ will fully finance Geomet and
Cinovec through the period to construction permitting and
commencement of construction. The principal components of the next
phase of work on Cinovec are the availability of management and
staff, ore samples for test work and laboratory staff and time.
All management and staff of both EMH and Geomet are unaffected
by COVID-19 and the current restrictions on travel and meetings are
not expected to have any impact for the foreseeable future; all
staff are able and continue to work remotely.
To-date, the Cinovec Project has drilled in excess of 13,800m of
diamond drilling under the management of EMH. Extensive sample
quantities are available from the resulting drill core as well as
material recovered from historic adit drives into the ore body.
Significant quantities of ore sample are held at our laboratory
partners in Germany and at the project office in the Czech
Republic.
European Metals and Geomet have confirmed with our laboratory
and engineering partners in Germany and Australia that staff and
laboratories involved in the DFS and FEED programmes over the next
3 months are ready and open for work on an immediate basis.
The full release can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/14513878.html
European Metals Managing Director Keith Coughlan said; "This is
a very significant day in the life of the Cinovec Project. To have
Europe's largest hard rock lithium project fully funded to decision
to construct ensures that Cinovec is firmly entrenched as the
pre-eminent lithium deposit in Europe. We are very pleased to be in
partnership with CEZ in the development of the Cinovec Project. CEZ
not only provide corporate, technical and financial strength, they
fully share the Company's vision for the development of a lithium
ion battery industry in Czech Republic."
- Ends -
For further information:
Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Novum Securities Limited (Joint
Broker) +44 (0) 207 399 9400
Jon Belliss
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding the
Company's future growth results of operations performance future
capital and other expenditures (including the amount. nature and
sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of the
Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions. The Company cannot assure investors that
actual results will be consistent with such forward-looking
statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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