European Metals to advance financing discussions for Cinovec

WHAT’S next for European Metals after a prefeasibility study for the Cinovec lithium hydroxide project in central Europe indicated an economically viable development, but at a cost of nearly A$700 million?

The company's non-board, chief operating officer Neil Meadows has left the company to pursue another opportunity following completion of the prefeasibility work, with European Metals saying the completed study "provides a platform … to advance discussions with potential finance providers and/or JV partner".

Aside from that comment, the company gave few (if any) pointers to its next steps.

European Metal's cash position is estimated to be around $500,000.

Cinovec's total capital cost of US$482.6 million for annual production of 25,267t of battery grade lithium hydroxide creates a project with a net present value of $1.1 billion and a post-tax internal rate of return of nearly 29%.

European Metals reported in January receiving an indicative offer letter from Krupa Global Investments/Ceske Lithium.

However, no indicative price was cited in the letter.

European Metals' major shareholder is lithium-focused, AIM-listed Cadence Minerals.

Shares in European Metals were unchanged at A35c in morning trade, capitalising the company at $51 million.

The stock spiked to over $1.30 early in 2017.