Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update today from
If concluded, the agreement will see, subject to the successful completion of due diligence, shareholder, and other approvals, CEZ become a 51% shareholder in Geomet s.r.o. ('Geomet'), the Company's Czech subsidiary and holder of the rights over the Project, for consideration of approximately
Cadence holds approximately 19.1 percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o. ('Geomet'), controls the mineral exploration licenses awarded by the Czech State over Cinovec.
Background to the Proposed CEZ Subscription
In July this year, European Metals announced that CEZ was conducting due diligence on the Company and the
European Metals considers that
Headquartered in the
The largest shareholder of its parent company, CEZ a. s., is the
As one of the leading Central European power companies, CEZ intends to develop several projects in areas of energy storage and battery manufacturing in the
CEZ is also a market leader for E-mobility in the region and has installed and operates a network of EV charging stations throughout
AIM Rule 15
The Proposed Subscription would constitute a fundamental change of business for European Metals under Rule 15 of the AIM Rules. The Proposed Subscription is therefore conditional on, inter alia, Shareholder approval which will be sought at a General Meeting of the Company to be convened in due course. European Metals will, however, remain an operating minerals company under the AIM Rules given its remaining material interest and ongoing involvement in the
The completion of the Proposed Subscription will not result in any changes to the European Metals' board or management.
Further information
European Metals expects to publish shortly a circular to shareholders setting out further details of the Proposed Subscription, the Exclusivity and Framework Agreement and Geomet Shareholders' Agreement, together with notice of the General Meeting and a further announcement will be made in due course.
European Metals Managing Director
If concluded, this agreement will result in Cinovec being fully funded through to a construction decision and will assist greatly in the integration of Cinovec into the European battery market. The potential investment by CEZ further demonstrates EMH's commitment to develop fully the
Cadence Minerals CEO
Contact:
Tel: +44 (0) 207 440 0647
Forward-Looking Statements
Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as 'believe' 'could' 'should' 'envisage' 'estimate' 'intend' 'may' 'plan' 'will' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Cadence's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.
(C) 2019 Electronic News Publishing, source