European Metals Holdings Ltd. said March 2 that the Czech Republic's trade and industry ministry backed out of a memorandum of understanding signed with the company in October 2017 over the Cinovec lithium project in the country.
The agreement was not binding, but it suggested that the Czech government expected Cinovec to boost jobs beyond the potential mine site, should the project be built and go to production. The deal also outlined the parties' willingness to explore downstream processing opportunities, Czech academic research into lithium processing and other possible agreements.
According to European Metals, the termination does not affect its exploration rights over Cinovec or its tenure over the project's exploration permits. The company continues to advance the project and remains engaged with stakeholders for Cinovec's development.
