Europa Metals reduces annual loss, focuses on Viridian, Denarius deals

(Alliance News) - Europa Metals Ltd reported on Thursday its annual loss shrank as the company focused on its proposed acquisition of Viridian Metals Ireland Ltd and the proposed sale of the Toral lead, zinc and silver project to Denarius Metals Corp.

The Europe-focused lead-zinc and silver developer saw its pretax loss narrow to AUD632,780, around GBP320,586, for the financial year that ended June 30, from AUD3.4 million a year before.

No loss on deconsolidation was recorded, compared to loss of AUD1.3 million a year earlier. Exploration expenditure tumbled to AUD15,935 from AUD990,477.

Loss per share and headline loss per share narrowed to 0.66 cents from 3.83 cents.

Chair and Interim Chief Executive Officer Myles Campion said the company is looking to put itself on a firm financial footing via its access to equity in Denarius and on a pathway to exploration and production at Tynagh.

In September, Europa said it had signed a conditional term sheet to acquire Viridian Metals and its Tynagh brownfield. The proposed transaction constitutes a reverse takeover, meaning Europa would need to apply for re-admission of its shares to the AIM segment of the London Stock Exchange.

Also last month, Europa announce the proposed sale of the Toral project to Denarius for 7.0 million shares in Denarius for a total value of CAD3.5 million.

Campion said Julian Vickers will become chief executive officer of the company on completion of the Viridian transaction.

Vickers identified Tynagh over 10 years ago and has both funded and led the technical advancement of the project since its inception.

The existing Europa management team and board will remain with Chair Campion, Dan Smith as non-executive director & company secretary, and Evan Kirby as non-executive director.

Campion signalled that further appointments will be made as required.

In Johannesburg, Europa Metals shares were down 1.7% at 58 rand cents on Thursday afternoon. Shares are suspended in London amid the reverse takeover pact.

By Artwell Dlamini, Alliance News reporter

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