REG - Europa Metals Ltd - Final Results

Europa MetalsAnnouncement

31/10/2024 09:00

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RNS Number : 3911K  Europa Metals Ltd  31 October 2024

31 October 2024

Europa Metals Ltd

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

Final Results for the Year Ended 30 June 2024

 

 

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce its final results for the year ended 30 June 2024.

A pdf copy of the full audited Annual Report and Accounts is available on the
Company's website www.europametals.com (http://www.europametals.com) and at
the following
link: http://www.rns-pdf.londonstockexchange.com/rns/3911K_1-2024-10-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3911K_1-2024-10-31.pdf) , and
will shortly be posted to shareholders who have requested hardcopies. The
Company will advise of the timing and location of its 2024 Annual General
Meeting in due course

 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 8 9486 4036

E: dsmith@europametals.com

Myles Campion, Executive Chairman and acting CEO (UK)

E: mcampion@europametals.com

 

Beaumont Cornish (Nominated Adviser/Broker)

James Biddle/Roland Cornish

T: +44 (0) 20 7628 3396

 

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.

 

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 2024 and subsequently, Europa Metals
Ltd ("Europa Metals" or the "Company") has been steadily advancing the Toral
project via the third party definitive agreement with Denarius Metals Corp
(Cboe:DMET, OTCQB:DNRSF).

 

Results were received from the 2023 drilling campaign, with assays from seven
drill holes at Toral each reporting significant mineralization:

 

·      TOD-044 of 7.95m@4.46% ZnEq(PbAg), including:

o  4.25m@6.17% ZnEq(PbAg); and

o  1.55m@11.40% ZnEq(PbAg)

·      TOD-045 of 4.95m@22.71% ZnEq(PbAg)

·      TOD-046 of 1.50m@11.64% ZnEq(PbAg), including:

o  1.00m@15.84% ZnEq(PbAg)

·      TOD-047 of 0.6m@18.34% ZnEq(PbAg) and 2.4m@3.72% ZnEq(PbAg)

·      TOD-048 of 4.7m@6.68% ZnEq(PbAg), including:

o  1.65m@14.41% ZnEq(PbAg)

·      TOD-048 of 6.65m@8.12% ZnEq(PbAg) including:

o  3.80m@12.58% ZnEq(PbAg)

·      TOD-049 of 5.00m@6.91% ZnEq(PbAg), including:

o  1.25m@20.93% ZnEq(PbAg)

·      TOD-050 of 3.90m@10.30% ZnEq(PbAg), including:

o  1.45m@20.69% ZnEq(PbAg)

·      TOD-050 of 2.4m@4.98% ZnEq(PbAg)

 

In October of 2023 a submission to the Junta of Castilla and Leon for a mining
licence was completed with all necessary documentation covering the
exploitation, restoration and environmental impact study being submitted.

 

In summary the submission envisages a life of mine of 15 years, mining on
average 700,000t of ore per year from underground, based on the deposit whose
technical, economic and environmental feasibility is in accordance with the
laws and regulations of the region of Castilla y Leon. Including
pre-production and closure plans, Toral's 18 year operations will create over
360 direct local employment opportunities and approximately 1,400 indirect
jobs in the region.

 

Europa and Denarius, as part of the agreement, have also signaled the ambition
to secure potential further concessions in the surrounding Northern Spain
region therefore expanding the footprint around Toral with several
applications being made over exploration ground during the period.

 

Subsequent to the reporting period, Europa announced in September the proposed
sale of the Toral Project to Denarius for 7,000,000 shares in Denarius
(Cboe:DMET) at CAD$0.50, for a total value of CAD$3.5m. This proposal was
successfully passed by all shareholders at an extraordinary general meeting on
25(th) October. This makes Europa a significant shareholding in a fast-growing
Canadian mining company in Denarius and gives exposure to not only Toral,
which we know very well, but also Zancudo, a gold mine coming on stream in
Colombia in the next six months, restarting the AquaBlanca nickel-copper mine
in southern Spain, and Lomero Poyatos, a polymetallic Cu-Au-Zn-Pb_Ag deposit
in southern Spain.

 

Over the coming period, the Board will continue with its endeavours to
capitalise on the potential of its shareholding in Denarius.

 

In last year's statement I signaled that Europa would pursue our stated
business development strategy and identify promising complimentary
opportunities for portfolio expansion. In September we announced the intention
to acquire Viridian metals who own 100% of the Tynagh brownfield Pb/Zn/Cu/Ag
project in the Republic of Ireland (the "Proposed Transaction").

 

The Tynagh minesite operated as an oxide open pit and laterly as a small
sulphide underground operation between 1973 and 1980, where from the open pit
they mined secondary oxidised material containing 16-18% combined zinc and
lead. This oxidised material and limited processing technology at the time led
to poor recovery of the metals resulting in a high grade tailings product.

 

Today there is a 6.7Mt surface waste Mineral Resource declared in terms of the
Candian Institute of Mining, Metallurgy and Petroleum Definition Standards
("CIM Definition Standards") and reported in an NI 43-101, at the site, plus a
possible 3.0mt of non compliant resources:

 

·      4.0mt@6.1% combined Zn+Pb, 1.4 Oz/t Ag (44g/t Ag), 18.95% BaO

·      2.7mt@1.7% combined Zn+Pb, 0.4 Oz/t Ag (13g/t Ag), 9.5% BaO

 

Viridian understands that the prior operators had realised that much of the
original metal content would be in the tailings and that re-treatment may be
possible and carefully stored and segregated the material with this in mind.
The metal content in the tailings facility is an equivalent grade to what is
being mined underground elsewhere today.

 

It is envisaged that Europa will undertake the necessary requirements to
conclude a definitive feasibility study and apply for an operating licence for
the re-cycle and reclamation project. In addition, we will conduct exploratory
drilling on the historical hard rock resources within the lease, looking to
upgrade the Zn/Pb/Ag resources to a 43-101/JORC standard and also define
further the significant Cu intersections previously drilled.

 

It is the intention that Julian Vickers will become Chief Executive Officer of
the Company on completion of the transaction. Julian identified Tynagh over 10
years ago and has both funded and led the technical advancement of the project
since its inception. Julian graduated with a first class honours degree in
Mining Geology from the Royal School of Mines, Imperial College, in 1987 and
also holds an MBA from the London Business School. He has wide experience of
deal making and financing in the natural resources sector and has spent 35
years in technical, commercial and financial roles within the industry.

 

The existing Europa management team and board will remain with Myles Campion,
Chairman, Dan Smith as COSec and NED, and Evan Kirby, Non Executive Director,
who was until recently the Chief Metallurgist at Jubilee Metals. Further
appointments will be made as required.

 

In conclusion, the Europa Metals board, with announcing the most recent
proposed transactions, is looking to put the company on a firm financial
footing via its access to equity in Denarius and on a pathway to exploration
success and production at Tynagh.

 

Myles Campion

Executive Chairman and Interim-CEO

30 October 2024

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2024

                                                                                       2024             2023
                                                                                 Note  $                $

 Other income                                                                    3(a)  277,071          177,279
 Administration expenses                                                         3(b)  (893,471)        (1,228,058)
 Exploration expenditure                                                               (15,935)         (990,477)
 Foreign exchange gain/(loss)                                                          (445)            44,724
 Share of net loss of associate                                                        -                (115,958)
 Loss on deconsolidation                                                               -                (1,267,907)
 Loss before taxation                                                                  (632,780)        (3,380,397)
 Income tax benefit / (expense)                                                  5     -                -
                                                                                       (632,780)        (3,380,397)

 Loss after income tax for the year from continuing operations
 Net loss for the year                                                                 (632,780)        (3,380,397)

 Other comprehensive income

 Items that may be reclassified subsequently to profit or loss
 Net exchange (loss)/gain on translation of foreign operation                          -                -
 Other comprehensive income for the year, net of tax                                   -                -
 Total comprehensive loss for the year                                                 (632,780)        (3,380,397)

 Net loss for the year attributable to:
 Equity holders of the Parent                                                          (632,780)        (3,380,397)
                                                                                       (632,780)        (3,380,397)
 Total comprehensive loss for the year attributable to:
 Equity holders of the Parent                                                          (632,780)        (3,380,397)
                                                                                       (632,780)        (3,380,397)
 Loss per share                                                                        Cents per share  Cents per share
                                                                                 7     (0.66)           (3.83)

 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     (0.66)           (3.83)
 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 2024

 

                                     2024          2023
                               Note  $             $
 Assets
 Current assets
 Cash and short term deposits  8     252,075       653,990
 Trade and other receivables   9     64,673        23,179
 Total current assets                316,748       677,169

 Total assets                        316,748       677,169

 Liabilities and equity
 Current liabilities
 Trade and other payables      12    310,773       118,902
 Total current liabilities           310,773       118,902

 Total liabilities                   310,773       118,902

 Net assets                          5,975         558,267

 Equity
 Contributed equity            13    49,562,236    49,391,945
 Accumulated losses            16    (52,856,850)  (52,224,070)
 Reserves                      15    3,300,589     3,390,392
 Total equity                        5,975         558,267

 

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 2024

 

                                                                  2024       2023
                                                            Note  $          $
 Cash flows used in operating activities
 Receipts from associate                                          277,071    -
 Exploration and evaluation expenditure                           (4,792)    (990,683)
 Payments to suppliers and employees                              (672,095)  (748,481)
 Net cash flows used in operating activities                20    (399,816)  (1,739,164)

 Cash flows used in investing activities
 Loan to associate                                                -          (212,330)
 Cash on deconsolidation                                          -          (120,213)
 Net cash flows used in investing activities                      -          (332,543)

 Cash flows from financing activities
 Lease principal repayments                                       -          (16,601)
 Proceeds from issue of shares                                    -          1,033,155
 Net cash flows from financing activities                         -          1,016,554

 Net increase/(decrease) in cash and cash equivalents held        (399,816)  (1,055,153)
 Net foreign exchange difference                                  (2,099)    59,087
 Cash and cash equivalents at 1 July                              653,990    1,650,056
 Cash and cash equivalents at 30 June                       8     252,075    653,990

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/3911K_1-2024-10-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3911K_1-2024-10-31.pdf)

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