European Metals receives interest for Cinovec lithium project

European Metals has confirmed that it received an offer from Krupa Global Investments (KGI) to purchase the largest lithium deposit in Europe, Cinovec, northwest of Prague.

The Western Australia-based company chose not to give consideration to this indicative offer as there is no detail regarding price, terms or conditions in the letter.

Though KGI has released the letter to the Czech Press, European Metals said it had no discussion with KGI on this matter.

The offer was made on behalf of the Ceske Lithium company, a member of the KGI Group in the Czech Republic.

European Metals controls the mineral exploration licenses awarded by the Czech state over the Cinovec lithium-tin project through its subsidiary Geomet s.r.o.

The project was bought by European Metals in 2012 after the mine was closed in 1993 and rehabilitated in 2000.

European Metals commenced geotechnical studies at Cinovec last November. It has also completed the preliminary feasibility study, which indicated a post-tax net present value of $USD540 million ($751 million).

Cinovec has an initial probable ore reserve of 34.5 million tonnes at 0.65 per cent lithium oxide and 0.09 per cent tin, which has been affirmed to cover the first 20 years of mining at an output of 22,800 tonnes per year of lithium carbonate.

It has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

European Metals said in an ASX statement, “The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.”

Cinovec is located in the heart of Europe, in proximity to end user car makers and companies involved in energy storage.

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