Commenting on the acquisition, Andrew Suckling, Chairman of REM LON:REM, said: “We have now built significant equity positions in major lithium deposits in both central Europe and northern Mexico, both these project have the potential to be large low cost producers supplying the fast growing lithium battery market.”
REM increases stake in the Cinovec Lithium Project to 19.8%
Rare Earth Minerals Plc (AIM: REM; OTC REMMY) has told DirectorsTalk that it has increased its strategic stake in one of the most significant lithium deposits in Europe, the Cinovec Lithium Deposit in the Czech Republic to 19.8%, through a direct holding in the share capital of European Metals Holdings Limited (ASX code: EMH) that owns 100 per cent of the exploration rights to Cinovec.
REM acquired its additional 7.9% holding in European Metals at a cost of approximately of GBP670,000 via a placement of new ordinary shares by European Metals. European Metals raised a total of AUD$ 1,755,000 (GBGBP 912,600).
The funds are being used to advance the Cinovec Lithium project up the development curve, and in particular continue the drilling campaign to upgrade the current Inferred Mineral Resource into the Indicated category that will form the basis of a pre-feasibility study.
Highlights of the Cinovec Deposit (as previously released):
— The Cinovec project is a large hard rock deposit with a total Inferred Mineral Resource of 5.5 million tonnes (“Mt”) of lithium carbonate equivalent (“LCE”) from 514.8 million tonnes Mt of ore at a grade of 0.43% Li(2) O.
— Exploration target of a further 3.4Mt to 5.3Mt LCE from between 350 to 450 Mt of ore at a grade of 0.39% to 0.47% Li(2) O.
— Total Indicated and Inferred Mineral Resources of 79.7Mt grading 0.23% Sn for 183kt of contained tin.
— Metallurgical test work has produced both battery grade lithium carbonate and high grade tin concentrate.
— Scoping Study shows potential production costs of approximately of US$1,500 per tonne lithium carbonate excluding tin and tungsten credits.
