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- European Metals has reached an agreement with CEZ Group which will see CEZ become a 51 per cent shareholder in Geomet
- Geomet is the company’s subsidiary and holds the rights of the Cinovec Project
- Cinovec hosts the largest lithium resource in Europe and is set to contribute to the growing EV and battery market
- CEZ is a European leader in power generation and is heavily engaged in battery-related activities
- This makes it a strategic partner for European Metals to develop Cinovec and its European presence
- Company shares are down 12.5 per cent and trading for 35 cents each
European Metals has reached a conditional agreement with CEZ Group regarding a potential strategic partnership and investment into the Cinovec Project.
CEZ is one of Central and Eastern Europe’s largest power utilities. It has roughly 33,000 employees and annual revenues of EUR €7.24 billion (A$11.7 billion).
Headquartered in the Czech Republic, CEZ’s core business is the generation and distribution of electricity and heat, sales of natural gas, and coal extraction.
If this agreement goes ahead, CEZ will become a 51 per cent shareholder in Geomet which is European Metals’ Czech subsidiary and holder of the rights of Cinovec.
Cinovec hosts the largest lithium resource in Europe and is set to contribute to the growing EV and battery market.
Since July this year, CEZ has been conducting due diligence on the company and the Cinovec Project.
Once this is completed, CEZ will obtain its holding.
The 51 per cent investment will be for a consideration of around EUR €34.06 million (A$55.25 million).
“We are very pleased to have concluded another stage of negotiations with CEZ regarding the future development of the Cinovec Project,” European Metals Managing Director Keith Coughlan said.
“If concluded, this agreement will result in Cinovec being fully funded through to a construction decision and will assist greatly in the integration of Cinovec into the European battery market,” Keith added.
The Czech-based company installs and operates a network of EV charging stations through the country which are set to grow significantly in the next few years.
The company considers CEZ to be an ideal partner for expanding its relationship in Europe and for the development of Cinovec.
Company shares are down 12.5 per cent and trading for 35 cents each at 3:43 pm AEDT.
