November 21 (Renewables Now) - CEZ Group may buy 51% in a subsidiary of European Metals Holdings Ltd, which has the rights over the Cinovec Lithium/Tin Project in the Czech Republic.
European Metals, holder of the mineral exploration licenses for what is touted as Europe’s largest lithium (Li) deposit, previously announced that it and CEZ were discussing a strategic partnership and that the utility was conducting due diligence on the company and the Cinovec project. On Wednesday it said CEZ could pay EUR 34.06 million (USD 37.7m) for a majority stake in European Metals subsidiary Geomet sro by subscribing for new shares in it.
CEZ is one of the big utilities in Central and Eastern Europe, with plans to build energy storage capacity and charging infrastructure for electric vehicles (EV) at home and in other parts of Europe. European Metals said that with CEZ on board as co-development partner it would be easier to secure offtake agreements for the Cinovec project.
The parties have entered into an Exclusivity and Framework Agreement with an exclusivity period through March 2020.
The Geomet investment is planned to happen through CEZ’s wholly-owned subsidiary SDAS. The proceeds from the transaction will be used by Geomet to bring the project to a decision to construct, including completion of the Definitive Feasibility Study and all permitting processes. The acquisition is subject to a number of conditions, including the completion of due diligence, approval by European Metals shareholders and an agreement on the initial work programme and budget for Geomet.
CEZ Group’s parent company -- CEZ as (PSE:CEZ; WSE:CEZ) -- is 70%-owned by the Czech Republic.
(EUR 1 = USD 1.11)