(Alliance News) - Europa Metals Ltd said on Wednesday it was cutting the remuneration of three directors as part of efforts to reduce costs and maximise cash resources earmarked for the Toral project.
These directors - Europa Metals Chair Myles Campion, Laurence Read and Evan Kirby - have agreed to the deferral and accrual of 50% of their remuneration for this year, with such accrued remuneration to be settled via the issue of new shares in the company .
The European-focused lead-zinc and silver developer also said that while the Toral project is already at an advanced stage, it is initiating a further series of work programmes, including additional geotechnical and resource drilling, in order to continue to de-risk it.
Geotechnical drilling and studies will initially serve to determine ground conditions at several potential plant sites, while ground assessment work has begun at a disused quarry site identified for potential reclamation.
Resource drilling will then seek to incrementally expand the company's pre-existing 5.9 million tonne indicated resource estimate, with ore sorting testwork is now underway.
The ore being sorted is from the upper zone material retrieved from the company's 2021 drilling campaign, which included four successful daughter holes, in order to assess and determine the maximum efficiencies for recovery and concentrate processing in the early years of the future Toral production profile.
Chief Executive Laurence Read said: "Our cost-cutting programme aims to ensure that our resources are directed as far as possible on project related expenditure and existing operations, as well as the evaluation of potential new complimentary projects and opportunities.
"We have a valuable asset in Toral which the board does not currently believe to be fully recognised and reflected in the company's share price and by seeking to identify and secure a potential new attractive project(s) to add to our portfolio we will endeavour to add value for shareholders whilst continuing to drive Toral forward."
In Johannesburg, Europa Metals shares rose by 2.9% to ZAR1.04, while they remained flat at 4.50 pence in London.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Europa Metals (EUZ)