(Alliance News) - Europa Metals Ltd on Monday announced it has received a grant of EUR466,801 from the Centre for the Development of Industrial Technology in Spain for the research & development of drillhole correction technologies.
The CDIT is a public business entity which answers to the Spanish Ministry of Economy and Competitiveness.
The lead-zinc and silver developer said the grant is a partly refundable loan and will go towards the development of research & development technologies relating to the recording and correction of drillhole deviation at the wholly owned Toral Project in north-west Spain.
The core objectives of the programme are to retrieve and process data from the Toral drilling campaign in order to develop algorithmic software for use in exploration campaigns to correct drilling deviation.
Europa Metals will draw the grant in up to three tranches, with the initial tranche of EUR163,380 to be received immediately. The second and third tranches are scheduled to be drawn down over the next 18 months and are subject to certain, defined, operational milestones.
Biannual repayments of EUR21,822 begin in 2024, running for 7 years until 2031, with no interest to be paid.
The grant will also enable the company to apply for reductions in taxes relating mainly to labour costs.
Europa Metals shares were up 8.4% at ZAR2.06 each in Johannesburg on Monday. The stock was up 6.3% at 11.42 pence each in London on Monday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Europa Metals (EUZ)