European Metals Holdings Limited (LON:EMH) (ASX:EMH) has raised gross proceeds of £1,035,500 via a share placing to advance the group’s corporate strategy, including to progress its drilling programme and upgrade its resource model.
The AIM-listed company, which controls the Cinovec lithium deposit in the Czech Republic, the largest in Europe, said it had issued 5,177,500 new ordinary shares - represented by Chess Depositary Interests (CDIs) - with new and existing investors at an issue price of 20p each.
The issue price represents around a 13% discount to the closing mid-market share price last Friday. In late afternoon trading on Monday, European Metal shares were 6.5% lower at 21.50p.
European Metal said the funds raised will also be used to begin the engineering process for a Definitive Feasibility Study; progress Environmental Impact Assessments for mining and processing; operate a pilot plant for production of samples for marketing; and progress discussions with potential strategic partners.
The company pointed out that investor Cadence Minerals Plc (LON:KNDC) subscribed for a total of 250,000 placing shares taking its holding in European Metal to a total of 28,096,470 CDIs representing 19.16% of the enlarged issued share capital.