Business
Final Agreement with CEZ for Investment in Cinovec
Final Agreement with CEZ for Investment in Cinovec.
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n \n \n RNS Number : 8394H\n European Metals Holdings Limited\n 27 March 2020\n \n \n \n \n For immediate release\n \n 27 MARCH 2020\n EUROPEAN METALS HOLDINGS LIMITED\n FINAL AGREEMENT WITH CEZ TO MAKE SIGNIFICANT\n INVESTMENT INTO CINOVEC PROJECT\n \n \n European Metals Holdings Limited (\"European Metals\" or the \"Company\") is pleased to announce that it has today reached final agreement (\"Final Agreement\") with CEZ Group (\"CEZ\"), one of Central and Eastern Europe's largest power utilities, regarding a strategic partnership and significant investment into the Cinovec Project (\"Cinovec\" or \"theProject\"). \n \n \n \n \n \n The Company announced on 20 November 2019 (\"\n Potential Strategic Partnership with CEZ and Significant Investment into Cinovec Project\") the terms of a conditional agreement (\"Conditional Agreement\") with CEZ under which CEZ had the option to subscribe to become \n a 51% shareholder in Geomet s.r.o. (\"Geomet\"), the Company's Czech subsidiary and holder of the rights over the Project.\n \n \n \n \n \n The Final Agreement reached today is now a binding commitment from CEZ to subscribe to become a 51% shareholder in Geomet, and is conditional only upon EMH shareholder approval, which will be sought at an EGM to be held in April 2020. \n \n \n \n \n \n The amended terms of the Final Agreement (as compared to the Conditional Agreement) include:\n \n \n \n \n \n (a) in the context of the binding commitment to invest described above and current market conditions, a reduction of the price payable by CEZ upon completing of the subscription of Geomet shares from €34,061,265 to €29,100,000; and \n \n \n \n \n \n (b) allowing CEZ to elect to withdraw from funding of the Project at two separate milestones. The first withdrawal milestone is designed to coincide with completion of the front-end engineering design program and semi-industrial pilot testing of the lithium concentrate processing while the second withdrawal milestone is designed to coincide with completion of the definitive feasibility study. If CEZ elects to withdraw, Geomet will return to it an amount equal to its initial investment minus €250,000 and all costs and expenses incurred in relation to the Project up until the date of notification of the withdrawal. Following a with...