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Up 10% a good start to the week

He also says the results of the drilling within 2 months - the ones outstanding which should improve the resources he says

Listening to Myles on the podcast is worthwhile. He mentions no dilution many times due to the deal and basically the first option gives us $4,000 (at that price as Myles said it valued Toral at 9p a share) to get the PFS and mining license the agreement to explore Antonina but also £2,000,000 worth of more drilling and research on Toral which could only mean more work on increasing the resources. He also says the results of the drilling within 2 months. The question is why $2,000,000 more drilling on Toral and what are we looking for. This money needs to be spent within 3 years for Demarious to get their 51% of Toral. The second option which is up to Demarious is to include Antonina within the PFS and to give us $2,000,000 within 12 months of the first option completing. So, after Option 2 is finished we will own 20% of a much larger area if Antonina is viable (if not 51%) and we will get $2,000,000.
I suspect the costs will relate to the new venture and not on the overspend when LR was running the ship and maybe he was asked to leave due to not controlling the finance very well.
I said 12 months ago that it would be worth giving up 75 or 80% to get this to a DFS. However, I think getting an enlarged area with I recon well over twice the resources to PFS/Mining license stage and $2,000,000 in the bank is better than I was asking for. If Antonina does not become part of the plan and there are no guarantees that Demarious wants or have the finance to go for the 29% then we will have 49% of Toral but with a PFS, Mining license and we will have spent $2,000,000 more to increase the resources at Toral.
Just think for one minute if Myles had announced a £650,000 placing to get Toral to a PFS and what that would have done to the SP and at what price would the placing be at. Yes, we would be getting the PFS/Mining license but in October 2024 we would need another huge placing. This is a great deal.

Yes Cjen we gave away 80% for both areas but if a PFS is not completed at Antonina we give away 51%. Unless someone has a crystal ball we should not take a PFS at Antonina has a given it would be a foolish person who states that is categorically going to happen and many AIM Mining companies have failed to get one. However, if we do get through option 2 then if Antonina is has big as Toral then we have 20% of a mine with at least twice the resources has Toral but the mandate and financial ability to include copper in the mix.

Cjen my thinking is to give away 51% of Toral to get it to a PFS, $2,000 further for more drilling and a mining license plus getting the exploration licenses on Antonina suggests giving another 29% of both projects to get Antonina to a PFS is far bigger than Toral.

Finally, for me this weekend from the RNS:

"The Board has for some time been evaluating a range of options to advance the Toral Project towards development in a manner that minimises dilution for the Company's shareholders as far as possible whilst also providing exposure to the significant future value inherent in the project. It is a credit to our Spanish team to have progressed and shaped the project to its current stage of development and we are delighted to be able to seek a definitive agreement to partner with Denarius and its successful development team.

So, the deal has been set up to minimize dilution if the deal goes ahead. I agree because with money from Demarious coming to us at every stage it will restrict any placings to a minimum. Additionally, the extra $2,000, 000 we have after the PFS is done is to go for copper to incorporate it in the mining license and the following DFS.

This is a great deal but the only risk for me for the next 2 months is that Demarious pulls out and I suspect that is why the SP has fallen back. However, when signed we will see a huge mark up.

Has Oiltap would once say on other boards we need to think much, much bigger

This deal is the best and a good option, it does depend on the resources price not collapsing and the viability of the partner. However, Denarius does not have to raise £6,000,0000 straight away in fact I suspect they can easily find $650,000. It is disappointing that the EUZ SP was not high enough for us to finish the PFS. Once, the PFS is done then we go for the mining license and a further $2,000,000 needs to be spent on Toral and we go for an exploration license for Anotonina which can take up to 3 years from the start of the deal. After all this is done, we can move on to stage 2, but Denarius has a further 12 months to pay us $2,000,000 and then and only then do they get their 51% of the combined project. If they fail in completing any of these items, I have mentioned they walk away with nothing, and we keep 100% of both projects. Once Denarius starts Option 1 the more, they spend the more they are committed or lose any money they have spent. Has the great Shed would, say IMO if this deal goes through, we have absolutely de-risked, and the financial risk is with Denarius. Finally, copper is absolutely now in the mix.

Last year we had some results and a month later the placement and no plans for the funding of Toral. This time we have the plans to get to a mining licence, another possible exploration and a partner to get Toral to DFS stage. When we get the results now they will give the SP a boost because the funding if it goes through is there.

This is great news MM because it will help them in raising $4,000,0000

However, there will be 2,000m drills to basically check what we have.

I like the comment from Myles:

"We look forward to welcoming Serafino and the rest of the Denarius team into the Toral Project and collectively changing the direction of exploration and mining activity across northern Spain with the ongoing support of regional governments and communities."

Is the change of direction adding Antonina or could we also be adding copper to the mix.

So, we get $100,000 straight away and $550,000 at the end of March. We do not need to do anymore drilling I suspect for the PFS. From the RNS below

In order to be able to exercise the First Option and acquire a 51% interest in the Toral Project (i) Denarius and Europa Metals shall agree on a work programme and budget and (ii) Denarius will thereafter fund a minimum of US$4m of expenditure (including US$650,000 to be advanced to Europa Metals as to US$100,000 on signing of the Definitive Agreement and as to US$550,000 on completion of a potential financing round by Denarius, which is expected to be concluded by 31 March 2023) towards:

Shed I actually think we can get through to the deal but that is the risk of a very small placing. We are being paid to do the work on Toral. The results will be out this month and then we should know the exact position.

Colin Bird our previous CEO

Yes, T72 but I am not bothered about the SP anymore because we have a long-term plan, and this IMO will be big. I kept buying at around 3p this year after the dilution last year and I have my stake bag up to 3% and that is enough for me. Before yesterday it was speculation due to cash crisis but now, we have an investment and a plan. If anyone follows CB, he advisors to ignore the noise. We might need to do a small placing in the next few months just to get this deal in place, but I am very happy and will still be retiring age 55 in March next year.

A long-term solution for a cash crisis -

Shed they first need to get it to an exploration license. The PFS for Antonina is happening in stage 2 when Toral will already have a mining license and stage 1 all needs to be done within 3 years and probably a lot sooner. In stage2 the updated targeted drilling will need to take done and then a PFS compiled. However, I suspect by then we will have the DFS for Toral. It is a very complicated deal and I suspect it's taken months and months to be agreed. Myles has asked for the $2,000,000 before stage 2 starts so that we can fund our share of getting Toral to a DFS so that we should not need any more money before we go for funding the actual building of the mine at Toral. Miles does not want dilution just before a DFS. This a long-term problem for a short-term cash crisis and I am very happy. Antonina, I agree will not need the work Toral needed and I suspect Miles thinks that this could be even bigger than Toral.

Toral could be producing within 5 years, but Antonina will not because it will take time for the drilling and research to be completed.
I was worried about the funding this year and the continuous dilution if we did it alone and the wasted time going through this route. EUZ would still be seen has a company raising money to pay the directors a salary.
This RNS was exactly what I wanted and expected but even better than I thought due to the demise of the SP.
During Stage 1 and 2 when we will then own 49% of Toral - we will have a mining license being set up for a DFS and we will be given $2,000,000. We are worth £3,000,000. So, 49% of Toral will be worth far more than £1,100,000 in fact at mining license stage it could be worth north of £20,000,000 if both parties decided to sell it to a much bigger outfit. This is a win, win, win and the only big risk is the collapse in price of our resources price and the financial stability of our new partner.

Can you believe it with this deal EUZ is not going bust and in 5 years' time we could be part of 2 mines producing zinc, lead, silver and maybe even copper - how wrong have some people been on this board.

When WHI valued EUZ at 12 p that was based on no knowledge of a farm-in, JV or any money towards Toral getting to a Mining License/DFs or a similar asset next door going to a PFS. In fact, they were valuing EUZ on their balance sheet and the imminent need for funding and the high risk of a fire sale. Some people deserve to lose 99% of their holding because they absolute do not understand exploration and the markets.