European Metals is to receive a €6mln investment from the European Bank for Reconstruction and Development (EBRD) to help fund the Cinovec lithium project in the Czech Republic
EBRD’s investment will see it buy 12.3mln shares in EMH through a private placing at 42.3p each
As part of its due diligence, EBRD engaged an independent, international mining consultancy to conduct a technical review of the Cinovec project, EMN said in a statement.
EBRD also performed a review of the project with respect to compliance with EBRD's Environmental and Social Policy.
Keith Coughlan, EMH’s executive chairman, said it was a strong endorsement of Cinovec’s value and commitment to the highest environmental and social standards.
“The EBRD investment aims to fund the project's predevelopment work and opens a pathway to potentially securing project financing,2 he added.
“ The successful completion of the technical due diligence process is a testament to the quality of the Cinovec team.”
Cinovec is being developed by Geomet a 51/49% joint venture between state-owned CEZ and EMH.