By Tom Winnifrith | Thursday 7 April 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
On 15 December 2015 long time David Lenigas lackey Roland "fatty" Cornish floated, already Aussie listed, European Metals (EMH) on the AIM Casino on the back of its Cinovec lithium project in the Czech Republic.
On 24 February there was a ramptastic conference presentation see HERE. 13 pages of pure good news. On page 9 you will see the critical tie up with Lithium Australia explained.
Jabba's Rare Earth Minerals (REM) had a 12% stake and was the largest shareholder and so in true Lenigas form, 11 days after the pump came the dump - a large placing at 13.5 Aussie cents.
But on March 31 EMH announced:
As announced on 15 January 2016, the Company has been conducting independent studies to evaluate a number of existing lithium extraction methods. As a result of the positive results of those studies the Company has engaged with Dorfner Anzaplan to conduct the next level of advanced test work at its facilities in Hirschau, Germany.
Dorfner Anzaplan are (sic) a specialist in testing and engineering services for high value industrial and strategic minerals and downstream products and have (sic) had previous experience in the treatment of lithium minerals.
The Company has terminated its Heads of Agreement with Lithium Australia NL (ASX Code: LIT) involving the potential use of the Li-Max technology. Whilst the Company considers Li-Max to be a viable process warranting further investigation, it has been unable to arrive at terms that are commercially acceptable to the Company.
So European ditched Lithium Australia right.
Over on the ASX, Lithium Australia announced that IT was withdrawing see HERE "The action is a consequence of the parties failure to reach satisfactory commercial terms for the joint venture anticipated to the the outcome of the MOU"
He said, she said, whatever but it would be nice to know the exact cause of the breakdown and who terminated. Meanwhile I see European shares are pushing ahead sharply so one can only assume that it is another placing ahoy.
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