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Europa Metals Ltd on Wednesday said it signed a farm-in agreement with joint incoming venture partner Denarius Metals Corp to acquire an ownership interest in Europa Metals’ wholly-owned Toral zinc-lead-silver Project.
Following the agreement, Denarius Metals will have the right to acquire up to an 80% ownership interest in Europa Metals’ Spanish subsidiary, Europa Metals Iberia SL, which holds the project.
Denarius Metals has granted an initial option to acquire 51% ownership of Europe-focused lead-zinc and silver developer’s Toral project, followed by another 29%.
If Europa shareholders approve the deal, it would secure an initial $4.0 million investment into the Toral Project, and a potential future $2.0 million cash payment to Europa Metals.
Shares in Europa soared 25% to R 75.00 in Johannesburg on Wednesday afternoon, and rose 29% to 3.62 pence in London.
Europa Metals also raised £580,000, through a subscription for 12.9 million shares at 4.50 pence.
‘The first year will see an application being made for a mining licence at Toral, thereby moving the project along the path towards potential future development,’ Executive Chairman and acting CEO Myles Campion said.
‘In subsequent years, we 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.’
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