Cadence Minerals plc’s investee company European Metals Holdings Ltd is to buy land for $43.96 million on which to build lithium and ore beneficiation plants for the Cinovec lithium-tin mine in the Czech Republic.
DUKLA
The project, on the border with Germany, is 100% owned by Geomet s.r.o which in turn is 49% owned by Australian explorer and developer European Metals.
Energy conglomerate CEZ Group owns the remaining 51% of Geomet.
Cadence holds approximately 6.8% of European Metals and is its largest shareholder.
Geomet will buy the land at the industrial site of Dukla in the Újezdeček Municipality, 6.2km south of the planned Cinovec mine portal area, and will be the sole owner and user of the site.
The company also has exclusive and unconditional option agreements to buy three other land packages at Dukla.
SELECTION
Cadence said that Dukla was appropriate for the developments and in accordance with the definitive feasibility study (DFS) due to complete this quarter.
Selection of the site follows engineering layout and design work and geohydrological and geotechnical surveys completed in early 2023.
Dukla is already earmarked for industrial use and in April 2022 an application was submitted to to the Usti authorities to rezone the land around the site, ore transport corridor options and the Cinovec mine portal area.
The outcome of the “re-zoning” application is expected during the final quarter of this year.
On successful completion of the re-zoning application, the company intends to exercise its three options during 2024.
CINOVEC
Cinovec’s hard rock lithium deposit holds a total measured mineral resource of 53.3Mt at 0.48% Li2O and 0.08% Sn, indicated mineral resource of 360.2Mt at 0.44% Li2O and 0.05% Sn and an inferred mineral resource of 294.7Mt at 0.39% Li2O and 0.05% Sn containing a combined 7.39Mt lithium carbonate equivalent and 335.1kt of tin.