Cadence Minerals notes EUZ’s appointment of SMS Group for Cinovec’s FEED study
Cadence holds around 15% of the equity in EUZ, through its wholly owned subsidiary, Geomet. Geomet controls the mineral exploration licenses awarded by the Czech State over the Cinovec project, the joint venture project between EUZ and ČEZ Group.
Under today’s agreement, SMS will provide a complete Front-End Engineering Design (FEED) study as a major component of the ongoing Definitive Feasibility Study (“DFS”) at Cinovec.
The project recently received a €29m investment to fund the construction of the production facility.
SMS will design the full process integration, from the receipt of ore to the underground crusher to the delivery of finished battery-grade lithium chemicals product. This will also encompass the lithium process flowsheet as well as the tin/tungsten recovery circuit.
The FEED intends to deliver a binding fixed price lump sum turnkey EPC contract with associated process guarantee and product specification guarantees for battery-grade lithium chemicals.
The group expects that this will greatly assist to underwrite project financing from European and global financial institutions lending into this new energy EV-led industrial revolution.
It said the FEED study will commence immediately and is expected to deliver the EPC contract, as the final component part of the Cinovec DFS, by the end of Q4 2021.
Shares in Cadence Minerals have traded between a range of 10.55p and 13.00p over the past month and opened 0.88% lower this morning at 11.25p.
“The appointment of SMS is the culmination of a negotiation and due diligence process that has lasted over a year,” said European Metals’ Executive Chairman, Keith Coughlan.
He said that a successful delivery of the FEED study could provide a gateway to financing institutions and offtakers “of the highest quality.”
He added, “We believe that the intended product and process guarantees will greatly enhance the Project finance either directly through commercial lenders or through the recently announced collaborative agreement with EIT InnoEnergy."
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