European Metals Holdings Limited (LON:EMH) has reached a final agreement for Czech state power utility CEZ to take a 51% stake in the Cinovec lithium project.
The amended terms will see CEZ pay EUR29.1mln for its stake compared to the original proposal of EUR34mln.
CEZ also has two break points to withdraw from the project, which if triggered will see its investment returned minus EUR250,000 and costs,
The new terms provide sufficient funding for the next stage of the development of the project, Keith Coughlan, European Metals managing director said in a statement.
“Given the current uncertain state of global markets, it is particularly affirming for us to have a partner with the corporate, technical and financial strength of CEZ investing in the project,” he added.
European Metal shareholders have to agree the final terms at an EGM.