Activist investor Krupa Global Investments notified European Metals Holdings Ltd. of its intention to make a purchase offer for the latter's wholly owned Cinovec lithium-tin project in the Czech Republic.
Company shares were up 28% in late-afternoon London trading. European Metals said it would not give it any consideration to the "purported indicative offer letter" due to a lack of any details about the price, terms or conditions.
The companies have had no prior discussion regarding the sale, European Metals said, adding that Krupa Global released the letter to the Czech press.
The Cinovec project hosts a probable ore reserve of 34.5 million tonnes at 0.65% lithium oxide and 0.09% tin, which the company said would cover the first 20 years of mining at 22,800 tonnes per annum of lithium carbonate.