Cadence Minerals European Metals’ Cinovec classified as Strategic Project by Just Transition Fund

Cadence Minerals plc (LON:KDNC) has noted the announcement by European Metals Holdings Limited (ASX/LON:EMH) that the Cinovec Project has been classified as a Strategic Project for the Usti Region of the Czech Republic. The list of Strategic Projects has been approved by the European Commission, the Czech Central Government and the Czech Regional Government in Usti. Being classified as such means that the Cinovec Project has priority for grant funding from the Just Transition Fund co-funding, ahead of many other projects that have been submitted.

The total amount allocated by the Just Transition fund for the Czech Republic is CZK 41B (€1.64B) of which the Usti region has been allocated CZK 15.8B (approx. €632M). 

The first call for grant applications under the JTF opened on 14 November 2022 and closes on 31 December 2023.

Given the total amount which may be applied for by the eleven designated Strategic Projects in the Usti region in the first call is CZK 8.3B (approx €350M) and that the funds allocated in this first call from the Just Transition Fund to these Strategic Projects totals CZK7.3B (approx €300M), although there can be no certainty,  the Company is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the Project.

The maximum funding to be made available upon application to each Strategic Project in the Usti Region is CZK 1.2bn (approx €49M). The Cinovec Project has been allocated the maximum possible JTF grant of CZK 1.2B (approx €49M), subject to passing through the application process, funds remaining available and obtaining the necessary permits for the early-stage Cinovec work programmes to which this grant funding is planned to be applied to, in particular the early full development of the twin decline entry/egress system for the mine.

Accordingly, *Geomet s.r.o (the Cinovec project company) will apply for JTF Grant funding for the maximum amount of CZK 1.2B (approx  €49M). 

EMH Executive Chairman Keith Coughlan said:

“I am very pleased that the European Union via the Just Transition Fund has approved the Cinovec Project as a Strategic Project for the Usti Region of the Czech Republic.  This approval provides further evidence of strong support from the Czech Government and the European Union and the Europe-wide recognition of the critical part which the Cinovec Project will play in enabling the EU to reach its stated goals of lithium self-sufficiency by 2030.”

“The proposed grants from the Just Transition Fund could play an important part in accelerating the development of the Cinovec Project. For example, the initial entry into the deposit via twin declines and ancillary road network at the proposed Dukla site are likely to be early-stage beneficiaries of this funding. This could reduce the time until first ore is produced by the Cinovec Project post final investment decision.  As the funding is in the form of a non-repayable grant this could also have the additional benefit of not diluting the existing shareholders of the Company.”

“European Metals is well positioned for the rising demand in battery materials, developing the Cinovec project, the largest hard rock lithium project in the EU, which is centrally located on the Czech Republic’s border with Germany. The project possesses excellent ESG credentials which will enable the production of battery grade lithium hydroxide and carbonate with potentially one of the lowest CO2 emissions, globally.”

*Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Geomet has been granted a preliminary mining permit by the Ministry of Environment and the Ministry of Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its wholly owned subsidiary, SDAS. Headquartered in the Czech Republic, CEZ a.s. is an established, integrated energy group with operations in a number of Central and South-eastern European countries and Turkey.

Cadence Minerals holds approximately 7.2% percent of the equity in European Metals Holdings.

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