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Quarterly Activities and Cashflow Report For the period ended 30 June 2018
Europa Metals Ltd
(Formerly Ferrum Crescent Limited)
(Incorporated and registered in Australia
and registered as an external company in
the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on the ASX: EUZ
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
("the Company")
Quarterly Activities and Cashflow Report For the period ended 30 June 2018
Highlights:
Operational - Toral lead-zinc-silver project, Spain (the “Toral Project”)
- On 23 April 2018, the Company announced that Mining Sense Consulting (“Mining
Sense”) had been engaged to support the exploration programme at the Company’s
100% owned Toral Project located in the province of León, Northern Spain. Mining
Sense’s Technical Director, Jesús Montero, is responsible for the consultancy team
dedicated to the Toral Project, under the ultimate direction of Myles Campion, Group
Technical Director.
o Over the last five years, Mr Montero has driven the mining studies and initial
construction of Berkeley Energia’s Salamanca project in the role of Mining
Manager.
- On 19 June 2018, the Company announced that it had engaged the services of UK
based Addison Mining Services Limited to commence an initial scoping study on the
Toral Project, with the following specific workstreams:
o Optimisation of the maiden JORC 2012 compliant Inferred resource estimate
prepared earlier this year;
o Preliminary mine layout;
o Mineral inventory estimation;
o Preliminary Economic Assessment, DCF and sensitivity analysis;
o CAPEX and OPEX parameters; and
o Review of environmental, hydrogeological and geotechnical parameters.
Corporate
- Sasfin Capital Proprietary Limited (“Sasfin”), a member of the Sasfin group, was
appointed as the Company’s JSE sponsor with effect from 1 May 2018.
- On 14 May 2018, the Company announced that 197,411,127 unlisted options
exercisable at £0.00165 per share on or before 12 May 2018 had lapsed unexercised. In
addition, the Company advised that a further 2,000,000 unlisted options exercisable at
£0.0075 per share and 3,000,000 unlisted options exercisable at £0.02 per share on or
before 1 March 2018 had also lapsed unexercised.
- On 21 May 2018, the Company announced, inter alia, that a special resolution had been
passed at a duly convened general meeting to change the name of the Company from
Ferrum Crescent Limited to Europa Metals Ltd with the Australian Securities and
Investment Commission (“ASIC”) recording the change of name effective on 31 May
2018 and trading on the ASX under the new code of EUZ commencing on 5 June 2018.
- On 22 May 2018, the Company announced, further to the receipt of shareholder
approval at the abovementioned general meeting, the completion of an equity
fundraising, comprising a placing and subscription, raising, in aggregate, approximately
£1 million (before expenses), through the issue of, in aggregate, 1,739,130,435 new
ordinary shares of no par value each in the capital of the Company at a price of 0.0575
pence per share.
Post Quarter End
- On 16 July 2018, the Company announced that it had secured a combined Reverse
Circulation and Diamond drilling rig for mobilisation to the Company's Toral Project site
during August 2018. The Combination rig and associated operating crew is being
supplied by Sondeos y Perforaciones Industriales de Bierzo SA and will be overseen by
the Company’s on-site exploration team.
- On 27 July 2018, the Company announced that it had conditionally raised, in aggregate,
approximately £563,516 (before expenses), through a placement of 727,118,650 new
ordinary shares of no par value each in the capital of the Company (the “Placing
Shares”) at an issue price of 0.0775 pence per share (the “Placing”). The Placing was
arranged by the Company’s joint broker, Turner Pope Investments (TPI) Limited
(“Turner Pope”), as agent of the Company, with certain new and existing investors and
utilises the Company’s existing share capital authorities.
- On 30 July 2018, the Company announced that 205,949,134 unlisted options
exercisable at £0.003 per share on or before 29 July 2018 had lapsed unexercised.
Additional Information
Fundraisings
On 22 May 2018, following receipt of shareholder approval at the Company’s general meeting
held on 21 May 2018, the Company announced, inter alia, the completion of an equity
fundraising, comprising a placing and subscription, raising, in aggregate, approximately £1
million (before expenses), through the issue of, in aggregate, 1,739,130,435 new ordinary
shares at a price of 0.0575 pence per share (the “Fundraising”). In addition, the Company
announced the issue of certain options and, in aggregate, 55,345,793 new ordinary shares to
certain of the Company’s directors in lieu of outstanding fees at the same price as the shares
issued pursuant to the Fundraising.
The Fundraising provided sufficient financing and general working capital to enable the
Company to progress the resource delineation and commissioning of an initial scoping study
in respect of the Company’s Toral Project. The net proceeds from the Fundraising have been
utilised towards the completion of all key phase 1 activities for 2018, including:
- commissioning of an initial scoping study including establishing first economic
parameters;
2
- extension drilling to the east of the main defined ore resource area seeking to
identify further mineralisation along strike, with the combination rig and associated
operating crew scheduled to be mobilised to site during August 2018; and
- metallurgical and mineralogical analysis to progress the Company’s understanding
of likely saleable concentrates from a full future mining operation.
Post quarter end, on 27 July 2018, the Company announced that it had conditionally raised,
in aggregate, approximately £563,516 (before expenses), through a placement of
727,118,650 Placing Shares at an issue price of 0.0775 pence per share. The Placing was
arranged by Turner Pope, as agent of the Company, with certain new and existing investors
and utilised the Company’s existing share capital authorities.
The net proceeds secured from the Placing will be utilised towards funding a planned phase 2
work programme at the Toral Project (leading to the eventual completion of a proposed
feasibility study), as well as providing additional general working capital for the Group.
Following the completion of the phase 1 extension drilling, phase 2 activities at the Toral
Project will be centred around a new diamond infill drill programme, focused distinctly within
the existing inferred ore body. Such additional exploration drilling will target the higher-grade
areas of the Toral Project, with the objective of seeking to increase and enhance the
Company's understanding of its existing maiden JORC 2012 compliant resource estimate and
complete certain key components required for a planned full feasibility study in due course.
Corporate Changes
On 2 May 2018, the Company announced that, in accordance with paragraph 2.6 of the JSE
Limited Listings Requirements, Sasfin had been appointed as the Company’s JSE sponsor
with effect from 1 May 2018.
On 21 May 2018, the Company announced that a special resolution had been passed at a
duly convened general meeting to, inter alia, change the name of the Company from Ferrum
Crescent Limited to Europa Metals Ltd with ASIC recording the change of name effective on
31 May 2018 and trading on the ASX under the new code of EUZ commencing on 5 June
2018.
Laurence Read, Executive Director of Europa Metals, today commented:
“The second quarter of 2018 saw the company obtain shareholder approval for the next stage
of work at the Toral Project. A scoping study to delineate the first economic parameters at
Toral has been initiated. The exploration team has been significantly enhanced with personnel
from the experienced Mining Sense team and a combination rig has been secured for
mobilisation to site shortly. We also changed the Company’s name to Europa Metals and are
fully focused on the continued realisation of value for our shareholders from the Company’s
promising Toral asset.”
Exploration Interests
The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for
the quarter ended 30 June 2018:
Project Location Right Number Right Status Holder Percentage
Interest
3
Toral León Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Province, Lago II 6.056 Exploration GoldQuest 100%
Spain Permit in Iberica, S.L.
progress
Lago III 6.058 Investigation
Permit in
progress
No tenements were acquired or relinquished during the quarter.
Competent Person’s Statement
The Toral maiden inferred resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist for
Addison Mining Services Limited (“AMS”), an independent Competent Person within the meaning of the JORC
(2012) code and a qualified person under the AIM guidance note for mining and oil & gas companies. The maiden
inferred resource estimate was aided by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under
the guidance of the competent person. Mr Hogg has reviewed and verified the technical information that forms the
basis of, and has been used in the preparation of, the current mineral resource estimate, including all analytical
data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical
techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the
form and context in which it appears. Mr Hogg has also reviewed and approved the technical information in his
capacity as a qualified person under the AIM Rules for Companies.
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
Europa Metals Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 30 June 2018
Consolidated statement of cash flows Current quarter Year to date (12
$A’000 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation (110) (348)
(b) development
(c) production
4
Consolidated statement of cash flows Current quarter Year to date (12
$A’000 months)
$A’000
(d) staff costs
(e) administration and corporate costs (448) (1,279)
1.3 Dividends received (see note 3)
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material) 57 122
1.9 Net cash from / (used in) operating (501) (1,505)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.2 Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing - -
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 1,663 2,305
3.2 Proceeds from issue of convertible notes
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of (93) (136)
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
Consolidated statement of cash flows Current quarter Year to date (12
$A’000 months)
$A’000
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing 1,570 2,169
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 109 504
4.2 Net cash from / (used in) operating (501) (1,505)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities - -
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 1,570 2,169
(item 3.10 above)
4.5 Effect of movement in exchange rates on 94 104
cash held
4.6 Cash and cash equivalents at end of 1,272 1,272
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 1,272 109
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 1,272 109
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 85
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities
8.2 Credit standby arrangements
8.3 Other (please specify)
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 560
9.2 Development
9.3 Production
9.4 Staff costs
9.5 Administration and corporate costs 315
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 875
10. Changes in Tenement reference and Nature of Interest Interest
tenements location interest at at end
(items 2.1(b) and beginnin of
2.2(b) above) g of quarter
quarter
10.1 Interests in mining
tenements and
petroleum
tenements lapsed,
relinquished or
reduced
10.2 Interests in mining
tenements and
petroleum
tenements acquired
or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Lodged electronically Date: 31 July 2018
Print name: Daniel Smith
Company Secretary
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Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have
been financed for the past quarter and the effect on its cash position. An entity that wishes to
disclose additional information is encouraged to do so, in a note or notes included in or attached
to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,
the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources
and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been
prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule
19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.
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
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker
T: +44 (0)20 3621 4120
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams/Duncan Vasey/Heena Karani
T: +44 (0)20 7469 0930
Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)
Sharon Owens
T (direct): +27 11 809 7762
31 July 2018
Perth
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.
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Date: 31/07/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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