Business
Proposed subscription by CEZ for 51% of Geomet
Proposed subscription by CEZ for 51% of Geomet.
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n \nRNS Number : 7875V European Metals Holdings Limited 05 December 2019 \n\nFor immediate release\n5 December 2019\nEUROPEAN METALS HOLDINGS LIMITED\nProposed subscription by CEZ for a 51% interest in Geomet s.r.o.\n \nPosting of Circular and Notice of Annual General Meeting\nFurther to the announcement on 20 November 2019, European Metals Holdings Limited (\"European Metals\" or \"the Company\") (ASX & AIM: EMH) announces that it has today posted a circular to shareholders (the \"Circular\") containing the details of the proposed subscription (the \"Proposed Subscription\") of €34,061,265 by CEZ a.s. (\"CEZ\") through its wholly-owned subsidiary SDAS, for 51% of Geomet s.r.o. the Company's wholly owned Czech subsidiary and the holder of the Cinovec licences. \nSummary of the terms of the Agreement\n· Pursuant to the Exclusivity and Framework Agreement, CEZ has the option, but not the obligation, to subscribe through SDAS for such number of Geomet Shares as will result in SDAS holding Geomet Shares comprising fifty-one per cent. (51%) of the ownership interests and voting rights in Geomet, attached with the right to receive fifty-one per cent. (51%) of dividends, liquidation balance and other proceeds payable by Geomet to Geomet Shareholders following completion of the subscription.\n· The amount to be paid by CEZ to Geomet under the option is in total approximately €34.06m, equivalent to approximately £29.15m and AUD55.25m. This compares to EMH's market valuation of approximately £32.88m (€38.42m; AUD62.32m) based on the closing price of an EMH share in London of 21.8 pence on 19 November 2019, the day immediately before announcement by EMH of the Proposed Subscription. The amounts in GBP and AUD included above have been calculated using an average exchange rate for EUR/GBP and EUR/AUD respectively as at 18 November 2019.\n· Completion of the Proposed Subscription is conditional, inter alia, on the satisfaction of the following conditions:\n(i) completion of due diligence in respect of the Company and the Cinovec Project to the satisfaction of CEZ at its sole discretion; \n(ii) the passing of the Ordinary Resolution at the Annual General Meeti...