European Metals gets EUR 2m finance facility from suitor CEZ Group
By Josh White
Date: Tuesday 16 Jul 2019
(Sharecast News) - European Metals Holdings announced on Tuesday that CEZ Group - one of central and eastern Europe's largest power utilities - has conditionally agreed to provide a €2m finance facility by way of a convertible loan.
The AIM-traded firm said CEZ was currently conducting due diligence on the company and its project.
It explained that the successful outcome of the due diligence process could see CEZ become European Metals' largest shareholder and co-development partner for the Cinovec lithium and tin project, through conversion of the convertible note and subsequent additional investment.
Headquartered in the Czech Republic, European Metals said CEZ is an "established, integrated energy group" with operations in a number of central and south eastern European countries, as well as Turkey.
Its core business was the generation, distribution, trade-in and sales of electricity and heat, trade-in and sales of natural gas, and coal extraction.
The largest shareholder of its parent company was the Ministry of Finance of the Czech Republic, with a stake of approximately 70%.
Shares in CEZ were traded on the Prague and Warsaw stock exchanges, and included in the PX and WIG-CEE exchange indices.
"We are delighted to be in advanced discussions with CEZ regarding the future development of the Cinovec Project," said European Metals Holdings managing director Keith Coughlan.
"CEZ is the largest company in the Czech Republic and one of the leading companies in central and eastern Europe, having a strong vision with regards to renewable energy and power storage."
Potentially partnering with CEZ further demonstrates EMH's commitment to develop fully the Cinovec Project in conjunction with Czech industry, for the benefit of the country's involvement in the battery and EV industries.
"With their blend of technical foresight and historic mining experience, CEZ is the ideal partner for the company."
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