Europa Metals signs letter of intent for joint venture with Denarius Metals

Highlights:

• Stage one option: Denarius will be afforded the exclusive right to acquire 51% of the project's intermediate holding company, Europa Metals Iberia S.L. (EMI), or the project's underlying permit(s), by spending US$4 million on the Toral project over a period of up to 3 years, comprising:
  • US$650 000 in two tranches to be utilised by Europa Metals to fund completion of a pre-feasibility study and mining licence application for the Toral project.
  • A further US$3.35 million to be applied towards:
    • Approximately 2000 m of confirmatory due diligence drilling.
    • Securing and exploring the nearby historic Antonina Zn-Pb mine area and surrounding concessions to form a proposed expanded JV project.

• Stage two Option: Denarius will be afforded the exclusive right to acquire an additional 29% interest in EMI, or the project's underlying permit(s), in return for: 
  • Delivering a further pre-feasibility study demonstrating positive economic results over the proposed enlarged project, including the Antonina concessions.
  • Making a cash payment of US$2 million to Europa Metals, within the 12-month period following exercise of the Stage one option.

Commenting today, Myles Campion, Executive Chairman and acting CEO of Europa Metals said:

"The Board has for some time been evaluating a range of options to advance the Toral project towards development in a manner that minimises dilution for the company's shareholders as far as possible, whilst also providing exposure to the significant future value inherent in the project. It is a credit to our Spanish team to have progressed and shaped the project to its current stage of development, and we are delighted to be able to seek a definitive agreement to partner with Denarius and its successful development team.

"Over the past four years, Europa Metals' team has been working diligently to progress this high-quality, base metals project in a world-class mining jurisdiction. This proposed investment by Denarius is a significant step forward in the advancement of not only Toral, but also our ambition to secure potential further concessions in the surrounding region.

"We look forward to welcoming Serafino and the rest of the Denarius team into the Toral project and collectively changing the direction of exploration and mining activity across Northern Spain with the ongoing support of regional governments and communities."

Serafino Iacono, Executive Chairman and CEO of Denarius, commented:

"We are extremely pleased to have agreed the commercial parameters for this proposed farmin transaction subject, inter alia, to definitive documentation which will enable Denarius to lead the development of this high-grade polymetallic project located in a well-mineralised historic mining area, and proactive jurisdiction that also offers potential further exploration opportunities. The high-grade concentrates that could be produced at Toral in the future make this a unique opportunity for Denarius to seek to develop a high-quality base metal project in the heart of Western Europe.

"Surging demand from industry, combined with increasing geopolitical risks, have served to increase raw metals prices over the last year. The production capacity to service the European automotive and lead-acid battery industry is declining and there is an urgent need to develop safer and more sustainable alternative raw material supply systems in the region. The proposed transaction could also provide future strategic synergy with our wholly owned Lomero-Poyatos polymetallic project in respect of the commercialisation of concentrates from both potential future operations."

Read the article online at: https://www.globalminingreview.com/mining/07102022/europa-metals-signs-letter-of-intent-for-joint-venture-with-denarius-metals/