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- European Metals (EMH) has received commitments to raise $7.1 million via a placement, with the money to go towards the Cinovec Lithium Project
- Under the capital raise, 6.45 million CHESS Depositary Interest’s (CDI) will be issued at a $1.10 per CDI — a 5 per cent discount to the last closing price
- Luxembourg green energy fund, Thematica Future Mobility, has agreed to chip in $5 million under the raise
- Thematica said the growth of electric vehicles in Europe has led to increased demand for substantial lithium supply
- Cinovec, which EMH has a 49 per cent stake in, is regarded as the largest hard rock lithium deposit in Europe
- Shares in European Metals have jumped 9.91 per cent at $1.28 each
European Metals (EMH) has received commitments to raise $7.1 million for the Cinovec Lithium Project in Europe.
The dual-listed materials stock will raise the funds via a placement, with 6.45 million CHESS Depositary Interest’s (CDI) to be issued at a $1.10 per CDI.
That price represents a 5 per cent discount to the last closing price of EMH shares on February 2 at $1.16 per share.
Among the investors taking part in the capital raise is Luxembourg green energy fund, Thematica Future Mobility, which agreed to buy $5 million worth of CDI’s.
Thematica said the growth of electric vehicles in Europe has led to increased demand for substantial lithium supply and Cinovec is regarded as the largest hard rock lithium deposit in Europe.
“The strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future,” the fund stated.
“The European Raw Material Alliance has stated its ambition is to have 80 per cent of lithium supply sourced locally — we see European Metals as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target,” it added.
EMH holds a 49 per cent stake in Cinovec — which recently posted its first results from a drilling program at the site.
Shares in European Metals have continued their upward trend, rising 9.91 per cent at $1.28 each at 12:31 pm AEDT.
