Australian Securities Exchange (ASX)-listed company Energy Transition Minerals has announced that its subsidiary, Energy Transition Minerals Spain, has been recommended as the preferred bidder to acquire the Penouta tin-tantalum-niobium mine in Spain.

The recommendation by the court-appointed administrator is part of the auction process for the assets of Strategic Minerals Spain, which is currently in administration.

The Penouta Mine, located in Galicia, Spain, includes both permitted and currently suspended sections.

The bid status places Energy Transition Minerals Spain in a favourable position ahead of a live auction scheduled for 29 July 2025.

Should its bid remain preferred, the company expects to be declared the acquirer of the productive unit of Strategic Minerals Spain by the court by October.

The offer for the mine is up to €3.6m ($4.1m), which includes a €2.5m fixed consideration, up to €1m in contingent payments and €100,000 coverage for employee liabilities.

A deposit of €500,000 has been lodged, which is refundable under certain conditions but forfeitable if the company's bid is not selected or if it withdraws post-selection.

The company has also committed to covering care and maintenance costs of up to €1.2m for a maximum of 12 months.

Completion of the transaction is contingent on several conditions including legal, regulatory and creditor approvals.

The offer will be funded from Energy Transition Minerals' cash reserves and the transaction is expected to be completed before the end of 2025.

The deal aligns with Energy Transition Minerals' strategy to build a diversified portfolio of critical minerals projects, complementing its core asset, the Kvanefjeld rare earths project in Greenland.