Denarius to acquire an interest in Europa Metals’ Spanish subsidiary

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

“We are very pleased to expand our scale in Spain through our partnership with Europa to develop an exciting high-grade polymetallic project located in a well-mineralised historic mining area and a proactive jurisdiction that also offers the potential for further exploration opportunities. The first year will see an application being made for a mining license at the Toral project, thereby moving the project along the path towards potential future development. In subsequent years we will seek to expand the current footprint of the project to encompass the nearby historic third-party Antonina mine and delineate further high-grade mineral resources, following the success of Europa’s recent drillholes.”

Pursuant to the definitive agreement, Denarius Metals has been granted a first option, exercisable until 22 November 2025 (subject to a 90-day extension in certain circumstances), to subscribe for a 51% equity interest in EMI by spending, as operator, a total of US$4 000 000 on the Toral project over the three-year period, completing a preliminary economic assessment and completing and submitting a mining license application in respect of the Toral project to the local Junta by 31 July 2023. The proposed transaction is subject to receipt of approval of Europa’s shareholders and once obtained, Denarius Metals will make an initial payment of US$100 000 to EMI followed by a second aggregate sum of US$550 000 to be made in periodic payments at the discretion of Denarius Metals following completion of a financing by the company. Denarius Metals’ expenditure commitment under the first option is subject to a minimum of US$1 million in each of the first two years of the first option period.

In addition, the definitive agreement provides Denarius Metals with a second option to acquire an additional 29% equity interest in EMI by delivering a prefeasibility study and making a cash payment of US$2 million to Europa within the 12-month period following the closing of the first option. On exercise of the second option, the parties will enter into a joint venture and a shareholders’ agreement that will govern the development and eventual operation of the Toral project.

Read the article online at: https://www.globalminingreview.com/mining/25112022/denarius-to-acquire-an-interest-in-europa-metals-spanish-subsidiary/