European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTCQX:EMHLF) shares advanced in Monday’s trade after its Cinovec lithium development in the Czech Republic has been classified as a strategic project for the Usti region by the EU.
Being classified means Cinovec has priority for grant funding from the Just Transition Fund (JTF) co-funding, it added, ahead of many other projects that have been submitted.
The Czech Republic has been allocated CZK1bn (€1.64bn) through the JTF, of which Usti is to receive CZK15.8bn. Applications for grants through the JTF opened on 14 November 2022 and will close on 31 December 2023.
Geomet, the joint venture company developing Cinovec, will apply for the maximum JTF grant funding of CZK 1.2B (€49mln), the company said.
European Metals noted that although there was no certainty, it is confident the Cinovec joint venture would receive a significant portion of the funds applied for from the JTF.
In a statement, Keith Coughlan, European Metals executive chairman, commented: “This approval provides further evidence of strong support from the Czech Government and the European Union and the Europe-wide recognition of the critical part which the Cinovec project will play in enabling the EU to reach its stated goals of lithium self-sufficiency by 2030.
"The proposed grants from the Just Transition Fund could play an important part in accelerating the development of the Cinovec Project. For example, the initial entry into the deposit via twin declines and ancillary road network at the proposed Dukla site are likely to be early-stage beneficiaries of this funding.”
Geomet is owned 49% by European Metals and 51% by state-owned CEZ.