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Receipt of Unsolicited Indicative Offer - Cinovec
Receipt of Unsolicited Indicative Offer - Cinovec.
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n \nRNS Number : 2760N European Metals Holdings Limited 16 January 2019 \n\nFor immediate release\n16 January 2019\nEUROPEAN METALS HOLDINGS LIMITED\nRECEIPT OF UNSOLICITED INDICATIVE OFFER FROM \nKRUPA GLOBAL INVESTMENTS (KGI) FOR THE CINOVEC PROJECT\n \nThe Board of European Metals Holdings Limited (\"European Metals\" or \"the Company\") confirms that it received on 15 January 2019 a letter from Krupa Global Investments (KGI) purporting to make an indicative offer on behalf of the Ceske Litihium company (a member of the KGI Group) to \"purchase the lithium mining and processing project at Cinovec\".\nThe purported inidcative offer letter however does not contain any detail with regards to price, terms or conditions. In light of the absence of this information European Metals does not consider this to be an offer to which it can give consideration at this time.\nEuropean Metals is making this announcement as it has become aware that KGI has released its letter to the Czech Press. European Metals has had no discussion with KGI on this matter.\n \n \nBACKGROUND INFORMATION ON CINOVEC\nPROJECT OVERVIEW\nCinovec Lithium/Tin Project \nEuropean Metals, through its wholly owned subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372.4Mt @ 0.45% Li2O and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.18 million tonnes Lithium Carbonate Equivalent and 263kt of tin. An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years mining at an output of 22,800 tpa of lithium carbonate.\n \nThis makes Cinovec the largest lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource.\nThe deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.\nEMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21%. It confirmed the deposit is amenable to bulk underground mining. Metallurgical test work has produc...