REG - Europa Metals Ltd - Toral JV Update: Initial budget agreed w/Denarius

Europa MetalsAnnouncement

22/03/2023 14:15

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RNS Number : 8976T  Europa Metals Ltd  22 March 2023

22 March 2023

Europa Metals Ltd

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

Toral JV Update: Initial US$1.8m budget agreed with Denarius

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce that an initial budget for planned expenditure on the
Company's wholly-owned Toral Zn-Pb-Ag Project (the "Toral Project" or
"Toral"), in the León Province, north-west Spain, of approximately US$1.8m
for a 12 month period has recently been agreed between the Company and its
joint-venture ("JV") partner, Denarius Metals Corp. (TSXV:DSLV; OTCQB: DNSRF)
("Denarius"). The budget will principally be applied to a combination of
confirmatory and infill drilling within the indicated resource block outlined
to date at Toral utilising up to two rigs which is scheduled to commence at
the end of this month.

 

Further to the receipt of shareholder approval in respect of the definitive
agreements in relation to the JV at a general meeting of the Company held on
30 December 2022, a sum of US$100k was paid to its wholly-owned Spanish
subsidiary, Europa Metals Iberia S.L. ("EMI"), which facilitated the
advancement of the planned mining licence application ("MLA"). Following a
successful capital raising by Denarius earlier this month, a further US$550k
has recently been advanced to EMI by Denarius to enable timely completion of
the planned initial work programme in accordance with the timeframe set out
under the definitive JV agreements.

 

Highlights:

·    Initial Budget: Budget of US$1.8m for a 12 month period agreed with
JV partner in respect of Toral which will be utilised by EMI for:

o  Up to 7,000m of additional drilling to cover:

§ confirmatory drilling

§ infill drilling on the known indicated resource area

o  Desktop review and preparatory application work on potential additional
surrounding permits

o  Resource update

o  Ongoing working capital requirements

 

·    Mining Licence Application: Work on the MLA commenced in January 2023
and is now at an advanced stage:

o  Mining methods selected

o  Site location for major facilities and plant site defined

o  Heritage and archeological studies underway

o  Final environmental studies underway

 

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

 

"Denarius recently completed a financing round which has triggered the payment
of an additional US$550k to EMI further to the initial US$100k received
following the approval by Europa Metals' shareholders of the definitive
agreements for the JV late last year.

Accordingly, we can now proceed aggressively with an initial 12 month work
programme for Toral alongside the MLA, which will be conducted by the Europa
Metals' team and supervised by Denarius' technical team. The programme will
progress this high-quality base metals project which benefits from the ongoing
support of regional governments and local communities.

Europa Metals' management team also continues to actively identify, evaluate
and engage with third parties with respect to its search for suitable
additional assets and new project opportunities with the potential to deliver
value for all shareholders."

Work Programme and Mining Licence Application

Following a recent financing round completed by Denarius, US$550k has been
received by EMI in accordance with the terms of the definitive option
agreement, further to the initial US$100k payment received from Denarius
following approval of the JV by Europa Metals' shareholders in late 2022.

 

The Company and Denarius have now approved an initial US$1.8m budget and work
programme for Toral covering a 12 month period which will incorporate a
comprehensive drilling programme and completion and submission of a MLA to the
Junta of Castilla y León.

 

A drill campaign of approximately 7,000m is scheduled to commence by the end
of this month with an initial single rig to be augmented with a second rig in
April 2023. The programme will focus firstly on confirmatory drilling followed
by a series of infill holes designed to corroborate the existing indicated
resource estimate. The results will then be applied to commission an updated
independent mineral resource estimate later in the year.

 

A desktop review and preparatory application work for securing potential
additional permits close to Toral is underway and will run for the next three
to six months to identify and formulate suitable exploration permit
applications to be submitted to the Junta of Castilla y León.

 

Running concurrently, the MLA involves preparation of an in-depth study which
commenced in January 2023 following the initial payment from Denarius of
US$100k. The work carried out by Europa Metals over the last 12 to 18 months
with regards to resources, hydrogeology, geotechnical measurements,
environmental and social studies on Toral has facilitated the rapid
advancement of this requisite study.

The location for all future major facilities and associated infrastructure has
now been defined which in turn allows for the finalisation of detailed
environmental, heritage and archaeological surveys on the specified project
area. Finalisation of capital requirements and ongoing cost profiles is
underway and will run in conjunction with formulation of a development
schedule following the trade-off study completed with regard to potential
mining methods. This work is ongoing and is on track to meet internal
timelines for submission of the MLA by the Junta's deadline of 31 July 2023.

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

 

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)

Sharon Owens

T: +27 (11) 011 9212

 

 

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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