Canada-based Denarius Metals has been granted a definitive option agreement to acquire, in two stages, up to 80% in Aim-listed Europa Metals’ Spanish subsidiary, which owns the Toral zinc/lead/silver project.

Denarius executive chairperson and CEO Serafino Iacono says the company is pleased to expand its scale in Spain through a partnership with Europa.

"The first year will see an application being made for a mining licence at the Toral project, thereby moving the project along the path towards potential future development. In subsequent years, Denarius 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,” Iacono states.

Pursuant to the definitive agreement, Denarius has been granted a first option, exercisable until November 22, 2025, to subscribe for a 51% equity interest in Europa Metals Iberia (EMI) by spending, as operator, $4-million on the Toral project over the three-year period, completing a preliminary economic assessment and completing and submitting a mining licence application to the local Junta by July 31, 2023.

The proposed transaction is subject to receipt of approval of Europa’s shareholders and once obtained, Denarius will make an initial payment of $100 000 to EMI followed by a second aggregate sum of $550 000 to be made in periodic payments at the discretion of Denarius following completion of a financing by the company.

Denarius’ expenditure commitment under the first option is subject to a minimum of $1-million in each of the first two years of the first option period.

In addition, the definitive agreement provides Denarius with a second option to acquire an additional 29% equity interest in EMI by delivering a prefeasibility study and making a cash payment of $2-million to Europa within the 12-month period following the closing of the first option.

Denarius also owns the Lomero project, in Spain.