https://www.miningweekly.com

Denarius granted option to buy 80% of Spanish zinc/lead project

23rd November 2022

By: Creamer Media Reporter

     

Font size: - +

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.

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION