European Metals Holdings Limited has announced its subsidiary, Geomet s.r.o, has agreed to purchase land at the industrial site Dukla, on which it intends to build the Cinovec Lithium Plant, for a total purchase price of US$43.96 million.
The Dukla site, subject to an existing industrial usage licence, is owned by four private companies, with the Czech State and/or local public entities owning all peripheral and contiguous land pertinent to the site.
According to the Company’s continuing DFS, which is expected to be completed in 4Q23, the Dukla site has been verified as an acceptable site for constructing a lithium plant to beneficiate Cinovec ore and produce battery-grade lithium. This assurance was gained due to engineering layout and design work conducted in the DFS and geohydrological and geotechnical investigations completed across the site in early 2023.
In April 2022, an application was submitted to the Usti Regional Department of Land Use Planning for the rezoning of the land around the Dukla site (which is currently zoned for industrial use), ore transport corridor possibilities, and the Cinovec Mine portal area. The outcome of this re-zoning application is expected in 4Q23. The Company expects to exercise its three options and close on these land acquisitions when the re-zoning application is approved, which is expected in 2024.
Geomet has received a loan from European Metals for CZK 121 million (US$ 5.51 million) for its share of all deposits and option fees. The Company financed the loan to Geomet with cash at the bank and believes that the balance of the amounts to be paid upon execution of the Option will be covered as part of the Cinovec Lithium Project’s financing.
“Acquiring this land secures an integral part of the Cinovec Project – the acquisition of the land on which the Lithium Plant is to be built. The close location of Dukla to the mine site is critical to the minimisation of transport costs and ESG impact. The acquired land is zoned for industrial use,” European Metals Executive Chairman Keith Coughlan said.
“With the land now secured, DRA Global can complete the layout designs for the lithium plant which are required as part of the DFS. This enables the timeline to completion to be maintained,” Coughlan added.
