Successful Placing to Raise AUD 7.1m
- Firm Commitments from institutional and sophisticated investors received for a private placement of AUD 7.1 million (before costs)
- Includes substantial support and participation with a A$5 million contribution by Luxembourg green energy fund, Thematica Future Mobility
- Funds raised will assist in further development of the Cinovec Project and general working capital and to introduce strategic institutional investors as the Company progresses the Project towards FID and full funding
- Cinovec contains the largest hard rock lithium deposit in Europe
- Cinovec is fully funded to final investment decision with approximately EUR 26.7m in the Project company currently
- EMH intending to become one of the lowest carbon footprint producers of battery grade Lithium Hydroxide and Lithium Carbonate in Europe
- Cinovec is situated within 250 km of a large number of existing or proposed end users of battery grade lithium chemicals
3 February 2021 - European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: ERPNF) (“European Metals” or the “Company”) is pleased to announce it has successfully received firm commitments for a placement for approximately 6.45 million CDI’s at an issue price of A$1.10 per CDI to raise A$7.1 million (before costs) (Placement). The Placement was well supported, especially by Thematica Future Mobility, a Luxembourg-based green energy fund.
The proceeds of the Placement will assist in the further development of the Cinovec Lithium Project, the largest hard rock lithium resource in Europe, and further general working capital.
European Metals Executive Chairman Keith Coughlan said: “We are very pleased to complete this capital raising at this time and to add cornerstone shareholders to our register who we believe will be very valuable to the company as we move into our full project funding. It is very pleasing in particular to welcome Thematica Future Mobility to the Company. Thematica is a specialist investor in the Electric Vehicle supply chain, based in Luxembourg. As such, Thematica recognizes the unique opportunity presented by investment in the Cinovec Project against a backdrop of unprecedented EU support.”
A Thematica representative said: “The strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future. The European Raw Material Alliance (ERMA) has stated its ambition is to have 80% of lithium supply sourced locally – we see European Metals Holdings, that should reach final investment decision in early 2022 post the completion of a definitive feasibility study, as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target.”
About Thematica
Thematica Future Mobility is a Luxembourg-based UCITS fund, with exposure to companies that are focused or will substantially benefit from the transition to clean and sustainable transportation and energy storage solutions. The fund invests in companies globally and across all market caps. For more information please go to www.thematicafunds.com
Under the Placement, the Company will issue 6,454,545 CDI’s pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1. The Placement pricing represents a 5% discount to the closing price of the Company’s securities on ASX on 2 February 2021 of $1.16 per share and a 1.8% premium to the 5-day VWAP of $1.084 per share.
This announcement has been approved for release by the Board.
WEBSITE
A copy of this announcement is available from the Company’s website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman
Tel: +61 (0) 419 996 333
Email: [email protected]
Kiran Morzaria, Non-Executive Director
Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary
Tel: +61 (0) 417 945 049
Email: [email protected]
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/James Sinclair-Ford (Corporate Finance)
Harry Ansell/Jasper Berry (Broking)
Tel: +44 (0) 20 7220 1666
Shard Capital (Joint Broker)
Damon Heath
Erik Woolgar
Tel: +44 (0) 20 7186 9950
Blytheweigh (Financial PR - UK)
Tim Blythe
Megan Ray
Tel: +44 (0) 20 7138 3222
Chapter 1 Advisors (Financial PR – Aus)
David Tasker
Tel: +61 (0) 433 112 936
