Arrangement with Denarius Metals for up to 80% of the Toral Project
Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce that it has signed a letter of intent for an option and joint-venture (“JV”) arrangement with Denarius Metals
Corp. Denarius will have the right to acquire up to an 80% ownership interest in the Company’s wholly owned Toral Zn-Pb-Ag Project, León Province, Northern Spain in two stages.
The Proposed Transaction is subject, inter alia, to confirmatory due diligence by Denarius, the finalisation and entering into of definitive documentation (the “Definitive Agreement”) and all requisite shareholder and regulatory approvals as appropriate.
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.
Serafino Iacono, Executive Chairman and CEO of Denarius, commented: “We are extremely pleased to have agreed the commercial parameters for this proposed farm-in 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.”
The Proposed Transaction involves the formation of an unincorporated joint-venture between Denarius and Europa Metals for the development of the Toral Project, which will cover both the existing investigation permit area and potentially the adjacent historic Antonina Mine area, the former licence for which is currently terminated by the Junta de Castilla y León.
