(Alliance News) – European Metals Holdings Ltd on Monday said that its Cinovec project in the Czech Republic has been approved as a strategic project for the Usti region of the country by the ‘Just Transition’ fund of -EU, or JTF, which makes it eligible for EU funds.
European Metals is a mineral exploration and development company focused on the Cinovec lithium-tin project for the production of batteries for electric vehicles.
The company said that the total amount allocated to the Czech Republic from the EU’s Just Transition fund was approximately EUR1.64 billion, with the Usti region in the North West of the country receiving approximately EUR632 million. or about 39%. European Metals added that the funds allocated in the first call from the fund amount to approximately EUR 300 million, and warned that there can be no certainty that Cinovec will receive funding from the EU.
“The company is confident that Cinovec will receive a significant portion of the funds applied for by the JTF for the project,” she said.
Executive Chairman Keith Coughlan said: “This approval provides further evidence of strong support from the Czech government and the European Union and recognition across Europe of the critical part the Cinovec project will play in enable the EU to reach its stated goals of lithium self-sufficiency by 2030. The grants proposed by 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 through twin declines and the ancillary road network at the proposed Dukla site are likely to be early stage beneficiaries of this funding. This could reduce the time until the first ore is produced from the Cinovec project after the final investment decision”.
Shares in European Metals Holdings rose 11% to 41.65 pence each on Monday morning in London.
By Tom Budszus, Alliance News reporter
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