European Metals Holdings Limited (ASX:EMH) announced today that it has received commitments for a private placement to raise $7.1 million for its Cinovec Lithium Project, the largest hard rock lithium resource in Europe.
Luxembourg-based green energy fund, Thematica Future Mobility, agreed to provide substantial support amounting to $5 million.
With a CHESS Depositary Interest (CDI) at an issue price of $1.10 per CDI, the funds raised will be used to assist in the further development of the Cinovec Project and general working capital, as well as introduce strategic institutional investors.
Commenting on the successful placement, European Metals Executive Chairman Keith Coughlan said: “We are very pleased to complete this capital raising at this time and to add cornerstone shareholders to our register who we believe will be very valuable to the Company as move into our full project funding.
“It is very pleasing in particular to welcome Thematica Future Mobility to the Company.”
Based in Luxembourg, Thematica is a specialist investor in the Electric Vehicle supply chain.
“As such, Thematica recognizes the unique opportunity presented by the investment in the Cinovec Project against a backdrop of unprecedented EU support,” Coughlan added.
According to a Thematica representative, the rise in EV sales in Europe, coupled with the rise of domestic battery cell production, will drive lithium demand in the future.
In September 2020, the European Raw Material Alliance (ERMA) announced a 2025 goal to locally cover 80% of battery needs for lithium. With its significant lithium resource, European Metals is in a prime position to contribute to ERMA’s strategic energy target.
“We see European Metal Holdings… as one of the first producers of battery-grade lithium chemicals on the continent and given it large resource, a meaningful contributor to the ERMA target,” said the representative.
