REG - Europa Metals Ltd - Drawdown of Final Tranche of CDTI Loan

Europa MetalsAnnouncement

25/07/2023 08:00

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RNS Number : 0865H  Europa Metals Ltd  25 July 2023

25 July 2023

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Drawdown of Final Tranche of CDTI Loan

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce that, further to the completion and submission last year
of all relevant documentation to the Spanish Government's Centre for the
Development of Industrial Technology ("CDTI") in respect of the final Stage 3
milestone, the sum of €137,572.34 has now been drawn down and received by
the Company from the CDTI.

Due to a reduced expenditure during the Stage 3 period, funds received from
tranche 3 have been reduced. The final total principal loan amount, by way of
a grant, of €459,581.47 (the "Grant") is categorised as a partly refundable
loan (with a nil per cent. interest rate) with the funds being utilised for
the development of R&D technologies relating to the recording and
correction of drillhole deviation at the Company's wholly owned Toral lead,
zinc and silver project ("Toral" or the "Toral Project") situated in the
region of Castilla y León, north-west Spain.

 

The University of Salamanca (AIR Institute) and drilling contractors Sondeos y
Perforaciones Industriales de Bierzo SA ("SPI") have worked closely with
Europa Metals in recording and analysing drilling data from 2020 onwards at
Toral. Utilising new down-hole monitoring technologies with its partners, the
University of Salamanca has now gathered a sufficient data set from over
5,000m of diamond drilling at Toral, to create a correctional algorithm to be
further researched towards potential future commerciality.

 

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

 

"We are pleased to have received the final tranche of the CDTI loan towards
the R&D project that has been carried out at Toral over the last 3 years.
It has been a most rewarding experience to have collaborated with the
University of Salamanca and SPI to integrate existing drilling technology with
new algorithms to inform in real time and predict possible problems associated
with downhole drilling deviation."

Additional Information

The CDTI ("Centro para el Desarrollo Tecnológico Industrial",
https://www.cdti.es/) is a Public Business Entity in Spain, under the auspices
of the Ministry of Science and Innovation, which fosters the technological
development and innovation of Spanish companies.  The Grant made to Europa
Metals is categorised as a partly refundable loan (with a nil per cent.
interest rate) with the funds received at each drawdown stage allocated
towards the development of R&D technologies relating to the recording and
correction of drillhole deviation at the Toral Project. Application for the
Grant was made  by Europa Metals, alongside the AIR Institute, linked to the
University of Salamanca, and SPI.

The Grant monies were drawable by the Company in up to three tranches subject
to certain, pre-defined, operational milestones being met. The core objectives
of the Innovation Programme were to retrieve and process data from drilling
campaigns at Toral in order to develop algorithmic software for use in future
exploration campaigns to correct drilling deviation. Biannual repayments
begin in 2024, running for 7 years until 2031, with a fixed interest rate
being set by the prevailing Euribor rate at inception of nil per cent.

Under the terms of the Grant, once the funds have demonstrably been spent to
the CDTI's satisfaction, 70 per cent. of the total Grant will be repayable
with the balancing 30 per cent. then not required to be repaid.

For further information on the Company, please visit www.europametals.com
(http://www.europametals.com) or contact:

 

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

 

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler/Abigail Wennington

T: +44 (0)20 7409 3494

 

WH Ireland Limited (Broker)

Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather

T: +44 (0)20 7220 1666

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (11) 011 9216

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

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