Business
Dispatch of NOM & Further Detail on CEZ Investment
Dispatch of NOM & Further Detail on CEZ Investment.
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n \n \n RNS Number : 1835J\n European Metals Holdings Limited\n 08 April 2020\n \n \n \n For immediate release\n 8 April 2020\n \n DISPATCH OF NOTICE OF MEETING\n AND FURTHER DETAIL ON PROPOSED CEZ INVESTMENT\n \n European Metals Holdings Limited (\"European Metals\" or the \"Company\") is pleased to advise that the Notice of Meeting for the forthcoming Extraordinary General Meeting (\"Notice\") will be dispatched to shareholders today. The Notice contains a letter from the Company, which is set out in full without material amendment or adjustment in Appendix 1 of this announcement.\n \n The Notice is in respect of the investment of EUR 29.1 million (~ GBP 25.6 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 investment is now subject only to European Metals shareholder approval.\n \n The Notice provides full details regarding the funding obligations and, subject to various terms and conditions, the right of CEZ to withdraw from the project upon reaching two specified milestones. The payment of EUR 29.1 million will be made shortly after completion following the EGM.\n \n Prior to the Construction Decision being taken, and subsequent to the relative funding obligations, CEZ will have the right to withdraw from the Project on either of the following milestones:\n \n Milestone 1\n \n Upon a minimum expenditure of EUR 12.3 million on the agreed work plan encompassing the engineering design program, including semi-industrial pilot testing; and\n \n Milestone 2\n \n The expenditure of a minimum of EUR 20.8 million on the agreed work plan including the completion of the Definitive Feasibility Study.\n \n Should CEZ not proceed after completion of Milestone 1, CEZ would have invested EUR 12.55 million and hold approximately 21.5 % of equity in Geomet. Should CEZ not proceed after completion of Milestone 2, CEZ would have invested EUR 21.05m and hold approximately 36.4% of Geomet.\n \n The directors of the Company believe that the ...