The European Metals Holdings Ltd CHESS (ASX: EMH) share price is currently trading at $1.30, up more than 12% so far today. European Metals shares went through the roof following the company's announcement regarding a private placement worth $7.1 million (before costs).
European Metals is an Australian and UK-listed mineral exploration and development business. The company is actively pursuing its Cinovec Lithium Project.
The Cinovec Project is located in the Krusne Hore Mountains which divide the Czech Republic from Germany. According to European Metals, mining in this historic region dates back to the 1300s.
The company is presently endeavouring to become one of the lowest carbon footprint producers of battery grade lithium hydroxide and lithium carbonate in Europe.
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European Metals share price boosts on $7 million placement news
The European Metals share price is on the move today as the market digests the company's placement news. According to today's announcement, the placement includes a significant $5 million contribution from the Luxembourg-based green energy fund, Thematica Future Mobility.
Thematica Future Mobility is a UCITS (Undertakings for the Collective Investment in Transferable Securities) fund with exposure to companies that are focused on, or will substantially benefit from, the transition to clean and sustainable transportation and energy storage solutions.
European Metals announced that it has received "firm commitments" for a placement of approximately 6.45 million CHESS Depository Interests (CDIs) at an issue price of $1.10 per CDI to raise the $7.1 million.
Placement proceeds will support the further development of the company's Cinovec Lithium Project. According to the company, Cinovec contains the largest hard rock lithium deposit in Europe.
The Cinovec Project is fully funded to final investment decision with approximately 26.7 million euros.
The future of electric vehicles in Europe
Commenting on its investment in European Metals, a Thematica representative said:
The strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future. The European Raw Material Alliance (ERMA) has stated its ambition is to have 80% of lithium supply sourced locally – we see European Metals Holdings, that should reach final investment decision in early 2022 post the completion of a definitive feasibility study, as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target.
Over the past 12-month period, the European Metals share price is up approximately 268%.
