EUR13 Million Cash Call Temporarily Cuts European Metals’ Geomet Interest to 42.62%

CEZ Covers European Metals’ Geomet Funding Share

European Metals Holdings Limited (ASX:EMH) has avoided an immediate EUR6.37 million funding obligation, but only by accepting a temporary reduction in its ownership of the Geomet joint venture. CEZ’s subsidiary Severočeské doly will fund the company’s share of a EUR13 million cash call in exchange for additional Geomet shares.

Ownership Drops from 49% to 42.62%

The arrangement reduces European Metals’ interest in Geomet by 6.38 percentage points, from 49% to 42.62%. SD will receive two new shares: one representing 51% of the cash call and 6.65% of Geomet’s post-injection value, and another representing the remaining 49% and 6.38% of post-injection value.

The funding keeps Geomet’s operations moving without an immediate cash payment from European Metals. Keith Coughlan, the company’s executive chairman, said European Metals was grateful to CEZ for covering the call and ensuring operations continued “at a rapid pace” towards a final investment decision.

Buyback Option Sets a November Financing Test

European Metals has an option to purchase the second new share from SD for EUR6,448,325 on or before 13 November 2026. Exercising it would restore the company’s Geomet ownership to 49%, its current level.

European Metals said it intends to exercise the option and is discussing financing with third parties, but it has not disclosed committed funding or whether the eventual structure would involve debt, new equity or another form of capital. Until that financing is secured and the option is exercised, the lower ownership position remains the operative one.

Geomet Progress Continues With Funding Structure Unresolved

The announcement provides no detail on how Geomet will deploy the EUR13 million cash call, beyond stating that the funding is intended to support continued operations and progress towards a final investment decision. The immediate benefit is continuity at the joint venture; the unresolved issue is whether European Metals can restore its stake without imposing a new financing burden on its shareholders or balance sheet.