How European Metals Is Advancing Europe’s Largest Lithium Project with New Permit and Funding
European Metals Holdings has advanced its Cinovec Lithium Project with a new preliminary mining permit and secured funding to complete its Definitive Feasibility Study, reinforcing its position in Europe's critical raw materials landscape.
- Preliminary mining permit granted for Cinovec South, valid until 2033
- Definitive Feasibility Study progressing on schedule with DRA Global
- Non-dilutive refinancing and A$3 million placement completed to fund DFS
- Environmental Impact Assessment on track for December 2025 submission
- Company cash position at A$1.087 million with ongoing capital strategy
Progress on Feasibility and Permitting
European Metals Holdings Limited (ASX – EMH) has reported significant strides in the development of its Cinovec Lithium Project in the Czech Republic during the September 2025 quarter. The company is advancing its Definitive Feasibility Study (DFS), led by engineering firm DRA Global, focusing on optimising throughput without expanding the mine’s surface footprint. This study is critical for securing final project permits and attracting investment.
Alongside the DFS, European Metals is progressing its Environmental Impact Assessment (EIA), aiming for submission by the end of 2025. This milestone aligns with the requirements of a substantial USD 36 million grant from the Just Transition Fund, underscoring the project's environmental and social governance credentials.
Regulatory Milestone – Preliminary Mining Permit
A pivotal regulatory achievement came with the granting of a Preliminary Mining Permit for Cinovec South in August 2025, valid for eight years. This permit complements existing permits for Cinovec Northwest and Cinovec East, collectively covering the entire ore reserve. Securing this permit not only affirms the project's strategic importance but also establishes European Metals' priority rights for final mining authorisations, a crucial step toward full-scale operations.
Funding and Financial Position
To support the DFS completion and ongoing operational needs, European Metals secured a non-dilutive refinancing facility alongside a A$3 million placement of new shares. This funding approach provides flexibility and avoids immediate shareholder dilution, a positive signal for investors. The company reported cash outflows of A$1.223 million related to DFS activities during the quarter and ended September with A$1.087 million in cash reserves.
Despite a relatively tight cash runway of under one quarter based on current expenditure, the board remains confident in securing additional funding post-DFS, citing successful recent capital raises and ongoing market engagement.
Strategic Importance of Cinovec
Cinovec stands as Europe's largest hard rock lithium deposit and ranks fifth globally among non-brine deposits. Its designation as a Strategic Project under the European Union’s Critical Raw Materials Act and as a Strategic Deposit by the Czech Government highlights its critical role in securing lithium supply chains amid rising demand for electric vehicle batteries and renewable energy storage.
With strong infrastructure links and a partnership with CEZ a.s., a leading Czech energy group, European Metals is well positioned to capitalise on the growing European lithium market. The project’s proximity to end-users and integration with power generation assets further enhance its economic viability.
Corporate Updates
During the quarter, the company announced a change in company secretary, with Sujana Karthik replacing Henko Vos. This administrative update accompanies the operational progress and reflects ongoing governance strengthening as the project advances.
Bottom Line?
As European Metals nears DFS completion and final permits, the next funding moves will be critical to sustaining momentum in Europe's lithium race.
Questions in the middle?
- What are the detailed optimisation scenarios being considered in the DFS to increase throughput?
- How will the company manage its cash flow given the current runway and upcoming capital needs?
- What are the timelines and risks associated with securing the Final Mining Permit following the preliminary approvals?
