European Metals Holdings Limited (LON:EMH) said the Czech Ministry of the Environment has granted its Czech subsidiary Geomet the preliminary mining permit related to the Northwestern part of the Cinovec deposit.
The group said the permit, which is a necessary legal pre-qualification before obtaining a final mining permit, has been issued for a period of 8 years and guarantees the company the priority right to apply for and obtain a final mining area and a final mining permit.
It noted that the preliminary approval for the Northwestern part of the deposit covers an area of 1.27 square kilometres and, together with the existing preliminary mining permits, now encompases the entire Cinovec ore reserve.
The company said this permit significantly strengthens Geomet's position as the only possible miner and paves the way for obtaining the remaining permits to start construction, mining, and processing activities.
Earlier this week, European Metals revealed that Geomet had now received €29.1mln following completion of its deal with power company, CEZ and the investment deal between European Metals and CEZ had completed. Accordingly, CEZ now has a 51% equity interest in Geomet, which is the holder of the licences to the Cinovec project, Europe's largest hard rock lithium project
In a statement, European Metals managing director Keith Coughlan commented: "With 100% of the Cinovec ore reserve now covered by PMP's, Geomet is now the sole company that can apply for a final mining permit across the Cinovec Ore Reserve which is Europe's largest hard rock lithium reserve and a globally significant deposit.”
He added: “With the recent investment of € 29.1 million into Geomet by CEZ, this security of tenure now allows Geomet to focus on rapidly advancing the feasibility and permitting of Cinovec."