REG - Europa Metals Ltd - Final Results and Notice of AGM

Europa MetalsAnnouncement

01/11/2023 07:00

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RNS Number : 9232R  Europa Metals Ltd  01 November 2023

1 November 2023

Europa Metals Ltd

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

Final Results for the Year Ended 30 June 2023

Notice of AGM

 

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce its final results for the year ended 30 June 2023.

A pdf copy of the full audited Annual Report and Accounts is available at the
following
link: http://www.rns-pdf.londonstockexchange.com/rns/9232R_1-2023-10-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9232R_1-2023-10-31.pdf) , and
will shortly be posted to shareholders who have requested hardcopies. At the
same time the Company will be posting its Notice of AGM to be held at Building
3, 566 Chiswick High Road. London W4 5YA at 10.00am on Thursday 30 November
2023. A copy of the Accounts and Notice of AGM is available on the Company's
website, www.europametals.com.

 For further information on the Company, please visit 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

 

Beaumont Cornish Limited (Nominated Adviser & Broker)

James Biddle/ Felicity Geidt

T: +44 (0)20 7628 3396

 

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (0)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.

 

Key Extracts from the Company's audited Report and Accounts are set out below:

Chairman and Interim CEO's statement

During the financial year ended 30 June 2023 and subsequently, Europa Metals
has secured funding for Toral via a third party agreement, conducted
additional highly successful drilling campaigns and combined with additional
metallurgical work, facilitated an update to the independent Indicated
resource estimate. The resources at the Toral Project, effective as of 30(th)
November 2022 contain an Indicated Resource of 7 Mt @ 8.1% ZnEq (including Pb
credits) within a total resource of approximately 20 Mt @ 6.8% ZnEq (including
Pb credits). This represented a substantial, approximate 19%, increase in the
indicated resource tonnage and a 14% increase in grade. The updated resource
estimate can be utilised in calculations for feasibility studies and to
support future mine planning.

 

Towards the close of 2022 Europa confirmed the signing of a definitive
agreement, a US$6m farm-in arrangement with Denarius Metals Corp. (TSXV: DSLV;
OTCQB: DNRSF) ("Denarius"), involving a two stage option and joint venture,
pursuant to which Denarius will be afforded the right to acquire up to an 80%
ownership interest in Toral.

 

The Option Agreement entered into with Denarius pursuant to which it has been
granted an initial option (the "First Option") to subscribe for 51 percent of
the share capital of Europa Metals Iberia S.L. (EMI), the 100 percent owned
Spanish subsidiary of Europa Metals which holds the Toral Project, and a
further option (the "Second Option") to potentially acquire an additional 29
percent of EMI's share capital from Europa Metals.

 

The First Option is for an initial exercise period of three years may be
exercised by Denarius conditional upon, inter alia:

·      it assuming operatorship and making expenditures on the Toral
Project of US$4,000,000;

·      completion of a preliminary economic assessment ("43-101 PEA")
compliant with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43- 101") on the Toral Project.

·      Expenditures to include the completion and submission of a mining
licence application in respect of Toral to the local Junta. This was completed
in October 2023.

 

The Second Option may be exercised by Denarius within a period of one year
from the date of closing of the First Option conditional upon:

·      exercise of the First Option;

·      completion of a NI 43-101 compliant pre-feasibility study (the
"PFS") on the Toral Project at its own cost;

·      and payment of US$2,000,000 cash to Europa Metals.

 

This investment by Denarius represents a significant step forward with respect
to the advancement of Toral and is the culmination of a strategy the board has
employed in seeking a long term partnership for the project. As part of the
agreement the parties have also signaled the ambition to secure potential
further concessions in the surrounding Northern Spain region therefore
expanding the footprint around Toral.

 

The 2022 drill campaign focused on expanding the known existing indicated
resource area, with the objective of extending the pre-existing indicated
resource estimate at depth towards the east of the current zone and thereby
linking up a known area of encouraging data. This campaign was the most
successful to date for Europa with the highest grade intersection being
drilled on the project, TOD-042 intersecting 5.25m@23.24% ZnEq(Pb+Ag),
including 2.5m@44.55% ZnEq(Pb+Ag)

 

With the successful drilling finished, the results combined with the recently
completed metallurgical test work from earlier in the year were inputted into
a new resource calculation. Indicated Resource of 7 Mt @ 8.1% ZnEq (including
Pb credits) within a total resource of approximately 20 Mt @ 6.8% ZnEq
(including Pb credits). This represented a substantial, approximate 19%,
increase in the indicated resource tonnage and a 14% increase in grade,

 

The campaign also completed our R&D collaboration project with the
University of Salamanca supported by Spain's Centre for the Development of
Industrial Technology (CDTI), with the final payment being received during
2023.

 

Over the coming period, the Board will continue with its endeavours to
capitalise on the potential of Toral for the profitable future development of
Toral in a stable and secure first world jurisdiction.  In addition, we have
continued to pursue our stated business development strategy and identify
promising complimentary opportunities for portfolio expansion. As at the end
of the reporting period, the management team had reviewed further projects,
with 3 being discussed and evaluated at Board level, and we intend to continue
such activity and to identify, investigate and assess additional opportunities
of potential interest. Further updates will be provided as and when
appropriate.

 

In conclusion, the Europa Metals team has worked diligently and very
successfully on the technical aspects of Toral, increasing both resource size
and grade and we have also brought in a dedicated partner in Denarius. The
funding that is now in place will enable the de-risking process to continue
and has facilitated the submission of a Mining Licence Application to the
relevant authorities with a subsequent Pre-Feasibility Study to follow.

 

Myles Campion

Executive Chairman and Interim-CEO

31 October 2023

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2023

                                                                                       2023             2022
                                                                                 Note  $                $

 Revenue
 Other income                                                                    3(b)  177,279          168,268
 Administration expenses                                                         3(c)  (1,228,058)      (1,327,747)
 Exploration expenditure                                                               (990,477)        (1,224,860)
 Foreign exchange gain/(loss)                                                          44,724           (78,730)
 Share of net loss of associate                                                  10    (115,958)        -
 Loss on deconsolidation                                                         10    (1,267,907)      -
 Loss before taxation                                                                  (3,380,397)      (2,463,069)
 Income tax benefit / (expense)                                                  5     -                -
                                                                                       (3,380,397)      (2,463,069)

 Loss after income tax for the year from continuing operations
 Net loss for the year                                                                 (3,380,397)      (2,463,069)

 Other comprehensive income

 Items that may be reclassified subsequently to profit or loss
 Net exchange (loss)/gain on translation of foreign operation                          -                (39,490)
 Other comprehensive income for the year, net of tax                                   -                (39,490)
 Total comprehensive loss for the year                                                 (3,380,397)      (2,502,559)

 Net loss for the year attributable to:
 Equity holders of the Parent                                                          (3,380,397)      (2,502,559)
                                                                                       (3,380,397)      (2,502,559)
 Total comprehensive loss for the year attributable to:
 Equity holders of the Parent                                                          (3,380,397)      (2,502,559)
                                                                                       (3,380,397)      (2,502,559)
 Loss per share                                                                        Cents per share  Cents per share
                                                                                 7     (3.83)           (3.57)

 Basic loss for the year attributable to ordinary equity holders of the Parent
 Diluted loss for the year attributable to ordinary equity holders of the        7     (3.83)           (3.57)
 Parent

 

The above Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying notes

Consolidated Statement of Financial Position

As at 30 June 2023

                                            2023          2022
                                      Note  $             $
 Assets
 Current assets
 Cash and short term deposits         8     653,990       1,650,056
 Trade and other receivables          9     23,179        85,420
 Total current assets                       677,169       1,735,476

 Non-current assets
 Plant and equipment                        -             46,877
 Other receivables                    9     -             63,018
 Right of use assets                        -             42,292
 Capitalised exploration expenditure  10    -             1,229,196
 Investment in associate              10    -             -
 Total non-current assets                   -             1,381,383

 Total assets                               677,169       3,116,859

 Liabilities and equity
 Current liabilities
 Trade and other payables             11    118,902       139,119
 Lease liability                            -             22,796
 Unearned income                            -             20,937
 Total current liabilities                  118,902       182,852

 Non-current liabilities
 Lease liability                            -             12,507
 Borrowings                           12    -             186,925
 Total non-current liabilities              -             199,432

 Total liabilities                          118,902       382,284

 Net assets                                 558,267       2,734,575

 Equity
 Contributed equity                   13    49,391,945    48,227,649
 Accumulated losses                   16    (52,224,070)  (48,843,673)
 Reserves                             15    3,390,392     3,350,599
 Total equity                               558,267       2,734,575

 

The above Consolidated Statement of Financial Position is to be read in
conjunction with the accompanying notes in the full Annual Report and
Accounts.

Consolidated Statement of Cash Flows

For the year ended 30 June 2023

                                                                  2023         2022
                                                            Note  $            $
 Cash flows used in operating activities
 Exploration and evaluation expenditure                           (990,683)    (1,115,564)
 Payments to suppliers and employees                              (748,481)    (1,083,549)
 Net cash flows used in operating activities                20    (1,739,164)  (2,199,113)

 Cash flows used in investing activities
 Payments for plant and equipment                                 -            (768)
 Loan to associate                                                (212,330)    -
 Cash on deconsolidation                                          (120,213)    -
 Net cash flows used in investing activities                      (332,543)    (768)

 Cash flows from financing activities
 Lease principal repayments                                       (16,601)     (34,783)
 Proceeds from issue of shares                                    1,033,155    2,760,272
 Transaction costs on issue of shares                             -            (138,369)
 Proceeds from borrowings                                         -            250,045
 Net cash flows from financing activities                         1,016,554    2,837,165

 Net increase/(decrease) in cash and cash equivalents held        (1,055,153)  637,284
 Net foreign exchange difference                                  59,087       (167,996)
 Cash and cash equivalents at 1 July                              1,650,056    1,180,768
 Cash and cash equivalents at 30 June                       8     653,990      1,650,056

The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes in the full Annual Report and Accounts which can
be accessed via the following
link: http://www.rns-pdf.londonstockexchange.com/rns/9232R_1-2023-10-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9232R_1-2023-10-31.pdf)

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