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EUROPA METALS LIMITED - Corporate Review and Operational Update - Toral Pb, Zn & Ag Project, Spain

Release Date: 18/11/2021 09:00
Code(s): EUZ     PDF:  
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Corporate Review and Operational Update - Toral Pb, Zn & Ag Project, Spain

Europa Metals Ltd
(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
(“Europa Metals” or "the Company")

Corporate Review and Operational Update - Toral Pb, Zn & Ag Project, Spain

Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce a
corporate review and operational update.

Further to the recent £1.5m (gross) fundraising and successful draw down of the second tranche of
€158,628.60 of the Company’s innovation grant from the Spanish Government Centre for the
Development of Industrial Technology (“CDTI”), the Company has commenced a number of
initiatives and strategic refocusing to progress its development during the remainder of 2021/2022,
as summarised below.
   •   The Company’s subsidiary, Europa Metals Iberia SL, is actively seeking potential asset
       financing through Spanish Federal and regional programmes with Insomnia Consulting
       (“Insomnia”) ( engaged to assist with applications
       through the appropriate channels. Insomnia has a strong track record in advising its clients
       on all facets of Spanish financing initiatives and client partnership agreements and will
       provide financing application support particularly in respect of Europa Metals’ work at its
       wholly owned Toral Project (“Toral Project” or “Toral”) implementing innovative new
       processes and designs in the Castilla y León region.
   •   Preparations for a resource and geotechnical drilling programme focused on areas
       around the expanded indicated resource at Toral planned to commence in Q1 2022. The
       key objectives of the anticipated limited programme shall be to ‘fill in’ areas within the
       Company’s existing block model and test the University of Salamanca’s correctional
       algorithm in accordance with the requirements of the CDTI grant.
   •   Progression of work regarding the potential utilisation of dry stack tailings which should
       serve to underpin low water usage, review of the potential for waste design/storage and
       reclamation initiative involving local, disused quarry sites.
   •   An internal review of the project’s proposed early years’ production profile based on the
       2021 drilling campaign results and new indicated resource area in order to seek to
       enhance its payback period.

A cost and strategic review has also been initiated focused on:
   •   Overall Group costs, including board remuneration.
   •   Optimisation of workflows on Toral to yield the maximum benefit and further de-
       risk/enhance the project’s economics.
   •   Transaction review team created to assess potential new projects and opportunities for
       Europa Metals alongside progressing pathways for the advancement of the Toral

Commenting today, Laurence Read, CEO of Europa Metals, said:
“Europa Metals is taking a series of steps to ensure the allocation of funds for maximum effect at its
Toral Project whilst simultaneously pursuing the potential acquisition of new, value accretive projects
for the Company. We are also undertaking a full review of the Group’s cost base, including board
level remuneration packages, and establishing a clear strategic pathway through the remainder of
2021/2022 to refocus our efforts on delivering value for shareholders.
“Toral is a well-advanced project that has a defined pathway to achieving a potential high margin
production start for a relatively low capital expenditure outlay. We shall continue to assess how best
to optimise the early years of potential future production at Toral in addition to commencing a highly
targeted drilling campaign within the lower, higher grade zones of the project supported by the
second tranche of the CDTI grant of €158,628.60 successfully drawn down earlier this month.
“Work is also underway to progress the potential for a low water usage tailings storage design,
coupled with a back fill and storage/reclamation initiative utilising local disused quarries in the area.
The implementation of such initiatives as part of our tailings design at the Castilla y León site will
likely be incorporated into our next stage of regional financing applications supported by Insomnia
“The Board also believes that identifying and securing potential new attractive projects can add value
to Europa Metals and is undertaking a review of the Group’s cost base to ensure that maximum
benefit is derived from the application of the net proceeds from the latest fundraising. We look
forward to providing further updates as and when appropriate.”

18 November 2021

For further information on the Company, please visit:
Linkedin:      Europa Metals ltd
Twitter:       @ltdeuropa
Vox:           Europametals
or contact:

Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)

Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494

WH Ireland Limited (Joint Broker)
Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather
T: +44 (0)20 7220 166

Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050

Sasfin Capital Proprietary Limited (a member of the Sasfin group)
Sharon Owens
T (direct): +27 11 809 7762

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.

Date: 18-11-2021 09:00:00
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