EMH one step closer to AIM listing

Published at Oct 15, 2015, in Mining

Lithium player European Metals Holdings (ASX:EMH) is one step closer to its long-awaited London listing after receiving a capital boost from London-based Rare Earths Minerals plc.

It told investors that it had bagged $360,000 on the back of a placement of 2 million CHESS depository interests at a price of 18c each, with one free attaching option of 20c.

EMH is attempting to list on the London Alternative Investment Market to better access a raft of UK and European investors as it seeks to bring its Cinovec Lithium-Tin-Tungsten project up to speed. However, it needs more working capital do so as a listing requirement, making the funding deal vitally important.

At the moment, the project has an inferred resource of 514.8 million tonnes of Lithium Oxide ore @0.43% grade, and 72.7Mt of Tin ore @ 0.23% grade.

However, EMH is attempting to use drilling done at the back-end of August to move more inferred resources to the indicated category, further enticing European investors.

Boost from Tesla dealmakers

Rare Earth Minerals is an existing EMH shareholder which specialises in lithium and rare earth deposits.

It currently has a market cap of about $140 million, and is a substantial shareholder in Bacanora Minerals, with both Bacanora and REM holding stakes in the Sonora Lithium deposit.

That deposit was recently the centre of a deal swung with electric car giant Tesla as it seeks to secure the materials needed for it so-called ‘gigafactory’ in Nevada, which will manufacture the batteries needed to boost car output in the coming years.

Tesla is hoping to churn out enough lithium-ion batteries to supply 500,000 electric cars by 2020.

Implications for LIT

EMH also has a tie-up with Lithium Australia (ASX:LIT) via a non-binding heads of agreement to see whether material from the area could be used to produce high-quality lithium carbonate.

LIT is trialling new technology, licensed from private company Lepidico, which it hopes could be used to produce from lower-grade lithium micas, which would then be ready to sell.

The upshot of LIT’s technology is that it can also funnel out potash and other elements within the ore, which of course can then be on-sold.

EMH is also seeking to prove that its ore can be produced at scale, previously sending a 1.5 million tonne sample to process engineering experts in neighbouring Germany in September for preparation of at least 400kg of zinnwaldite concentrate.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

tags

LITHIUM

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X