European Metals Holdings Ltd (LON:EMH) has said that the CEZ investment in the Cinovec project has been approved by shareholders at an extraordinary general meeting held on Thursday.
The investment gives CEZ a 51% interest in Geomet, the EMH subsidiary that holds the Cinovec licences.
It means that the Cinovec project is now fully funded up to the decision to construct, which as the company highlights, will, in turn, pave the way for the project to become the first European Union producer of battery-grade lithium compounds from a local lithium resource.
"This is a very significant day in the life of the Cinovec project,” Keith Coughlan, European Metals managing director said in a statement.
“To have Europe's largest hard rock lithium project fully funded to decision to construct ensures that Cinovec is firmly entrenched as the pre-eminent lithium deposit in Europe.
“We are very pleased to be in partnership with CEZ in the development of the Cinovec Project. CEZ not only provide corporate, technical and financial strength, they fully share the company's vision for the development of a lithium ion battery industry in Czech Republic," he added.
The group said the transaction is now ready to complete on April 27.