Canadian firm Denarius Metals has signed an option agreement to acquire up to 80% in Europa Metals’ Spanish subsidiary, Europa Metals Iberia (EMI).
EMI owns the Toral zinc/lead/silver project in Leon, northern Spain.
Under the agreed terms, Denarius will have the first option to subscribe for a 51% stake in EMI, until 22 November 2025.
Denarius will be entailed to invest $4m on the Toral project over a three-year period, complete a preliminary economic assessment, and submit a mining licence application by 31 July 2023 to the local Junta.
Denarius executive chairperson and CEO Serafino Iacono said: “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 drill holes.”
Furthermore, Denarius has a second option to buy a further 29% stake in EMI by delivering a pre-feasibility study and making a $2m cash payment to Europa within 12 months following the closing of the first option.
The proposed transaction is subject to Europa shareholders’ nod, and once secured Denarius Metals will make an initial $100,000 payment to EMI. Denarius will also make a second aggregate payment of $550,000 following the completion of its financing.