Member Info for Shedulike

Bricks EMI is Europa Metal's wholly owned Spanish subsidiary as things stand so if all options are undertaken EUZ shareholders will own 20% of the asset via EMI and the same portion of the enlarged area if the licence is granted, it can't be granted to Denarius alone under the agreement I am told, though I would rather see this in the Explanatory Statement (unless I've missed it). The £4m 'loan' is capitalised into EMI and Denarius have to spend it to complete the first option which includes the payments of $650k to us. If they only complete the first option (spending the £4m) we get 2% back taking us back to 51% with D having spent the £4m and updated the PEA. If they go onto complete option 2, EUZ go from 49% to 20% of EMI but get the £2m.

grappa I can't pretend that I hadn't hoped for a better deal but to say it isn't a JV is incorrect. Yes Denarius are operators, hardly a bombshell with this being at the top of EUZ's latest presentation - “we will lead the development of this high-grade polymetallic project” Denarius Chairman and CEO, Serafino Iacono". Anyway we knew this since completion of the deal will result in the 80% ownership but we retain a 1-3 representation on the board. Who knows if we might sell the last 20% in the future (I assume Denarius could liquidate their 80% also) but I think it is being largely overlooked that they only get the 80% by spending $4m, making a MLA, delivering a new PEA and ultimately PFS at their expense. We get $650k during the first option and $2m to complete the second. So we get the cash for new projects and 20% exposure to the advancement of Toral and enlarged mining district (admittedly no longer a condition of the deal so I would like to know if there is anything to stop Denarius getting Antonina and not honouring our 20%). As I said I'm not overwhelmed at the deal but we will have 20% of a project advanced to PFS level without spending a penny more on op's. Another thing I'd like a better understanding of is what happens assuming we complete option 2 with the 80-20% ownership intact, do we piggyback indefinitely in the development of Toral without any funding responsibilities for instance, or is the JV considered complete and ownership restructured? It is also noteworthy IMO that Denarius are now carrying the risk having become operator in return for their spending commitments and payments to us. I readily admit that I'm disappointed that the extensive de-risking that we achieved hasn't been converted into a much larger cash payment, particularly when you think of the $M's spent before us, was it estimated at approx $20m? So mixed feelings from me and still a few questions but I do feel that you were a bit off the mark with earlier comments, its an 80-20 JV with Denarius spending their money from now on.

Another grim day for the Denarius SP, guess the market is betting that they have to raise funds for their commitments at Toral. Will be interesting to see if their backers are supportive in buying shares at a premium as was the case with EUZ. Ps. When I say 'premium' I confess it is pretty tragic that 4.5p should be considered a premium.

Are they knocking off for Christmas ffs?

I don't know if you saw the posts the other day Grappa but Denarius are 32% owned by Aris Mining (approx CAD500m mcap), a fairly big gold producer. There are Directors on both Boards so I think it is a reasonable assumption that Aris approve of the Toral deal and will support Denarius in executing it. Not saying I wouldn't have much preferred to have one of the mining giants farming in though but Denarius have backing.

CHRI5P it feels to me that MC needs to sell the upside of this deal but maybe his hands are tied until they actually get the Antonina licence. The 20% exposure to an enlarged mining area could be massive but we don't know what it means. Antonina was worked from 1935-1983 so how much resource is left, what is the grade remaining? Are there other prospects on the licence footprint? I also think it would help if we knew Denarius' work program in the preparation of the MLA.

Teaye zinc is in massive demand and will continue to be with uses like offshore wind power. Admittedly it is a relatively abundant element and doesn't excite investors in the way that precious metals do but it is essential hence being categorised as a 'critical' mineral on both sides of the Atlantic. Having said that it would be interesting to diversify our targets.

I think it dropped before the announcement - a drip, drip, drip of sells in recent days. Let's be accurate though, we're selling the majority interest (up to 80%) in the asset.

No worries CJ - totally get the frustration. I suppose the only 'glass half full' angle could be that we're 40% up on levels before the first JV announcement but that only means anything for holders if we kick on upwards and to be honest it doesn't look like happening for now. It's also difficult to envisage the news flow that can push us on in the near term.

I think they mean Alto minerals CJ by subsidiary.

Hope we paid them with Legal Aid Bricks :)

I also notice as you'd expect that two Directors from Aris also sit on the board of Denarius so I think it's fair to say that Denarius' interest in Toral is also backed by Aris so a good endorsement for the asset of Toral. Aris sell a lot of gold so I'm a lot happier about the viability of Denarius to raise the funds that they have to spend on Toral.

Good find Bricks though I can only find evidence of 31.8% ownership by Aris. Still I'm much happier about Denarius' stability knowing that a bigger operating company have such a big interest in their success.
ii. Denarius Subscription Receipts
On March 17, 2021, the Company (Aris) acquired 22,222,223 units of Denarius in a non-brokered private placement of 75,000,000 subscription receipts (the "Denarius Subscription Receipts") at a price of C$0.45 per unit for a total cash consideration of C$10.0 million (equivalent to approximately $7.9 million). During the nine months ended September 30, 2021, the Company recorded a loss on financial instruments of $1.9 million in the consolidated statement of income (loss) (Note 18).
You'd think given their stake they would support Denarius in raising funds for their commitments at Toral.
On the subject of who will be operator at Toral, this from Denarius' Q3 statement:
"Europa has granted us two options to acquire up to an 80% ownership interest in the Toral zinc-lead-silver project (the “Toral Project”) located in the Leon Province, Northern Spain. As operator, we will lead the development of this high-grade polymetallic project located in a well-mineralized historic mining area and a proactive jurisdiction that also offers us the potential for further exploration opportunities.”

CHRI5P as a recently departed poster suggests that I never scrutinise your posts could I pick you up on one thing? I don't quite understand what you mean by Denarius 'not mentioning us'. The EUZ deal is referenced on the Home Page of their website and in their latest RNS 'Q3 Results'. Perhaps I misunderstood you, minor point anyway, footy time.

I thought that was good (though brief) - bit more energy than usual and some interesting background on Denarius. Pressed home that the value in the JV is much more than just the cash they are handing over but our exposure to the money that Denarius have to spend on Toral. At least it did for me, others may feel differently....

How long before the third coming of Bobby Beale I wonder? :) No need to flounce out treacle, as I said negative views very welcome (nobody is happy I assume) but get the facts rights. This 'debate' I find quite bizarre though. It's terribly written but here is the RNS as printed on here, you have to read the whole sentence..... but it's in the standfirst 100%, why not just back down with dignity, and carry on posting, just don't lace your stuff with bolo*ology.

Wed, 23rd Nov 2022 07:00
RNS Number : 3304H
Europa Metals Ltd
23 November 2022
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)
Definitive Agreement signed with Denarius Metals Corp. in respect of US$6m Farm-in Arrangement for Toral and Equity Fundraising of £580,000 at 4.5p

Highside they have released placing RNS's at discounts in isolation many times before but you think they felt the need to bury one at a premium? You also think that had the placing at a premium been released in isolation there would have been uproar but because it was in the same RNS as the signing of the agreement everyone is instantly pacified. I think you greatly misjudge other investors powers of critical thinking, perhaps best just speak for yourself in future. However let's end on a positive note and I see you did a fact check earlier, well done you.

Hi Bricks - looking at Sharenet.co.za (I think you have to subscribe to Moneyweb) the RNS is there with the total share capital stated, I can't accept that it is in anyway hidden. Has the actual JSE platform not updated or just associated third party platforms? I don't have a problem with negativity on this board, we're EUZ shareholders after all! :) What I will call out is when inaccuracies creep in, I assume to emphasise or add weight to a point which might otherwise be legitimate or at least open to debate. There's plenty enough to be negative about without making stuff up.

I'm not surprised you found my response predictable as surely you've learnt by now I will point out your inaccuracies and frankly delusions ("Hidden placing" lol). Nobody is perfect and I slipped up the other day not stopping to check what I'd written, CHRI5P pointed it out and I apologised, not wanting it to appear that I had deliberately misled the board. You would do well to apply the same diligence and courtesy, not holding my breath you'll be disappointed to hear.

If LR knew about it 10 months ago (which seems quite likely) it doesn't really make it an "11th hour rescue", but hey it sounds dramatic. Also how exactly was the placing hidden? Top of the RNS: ("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)
"Definitive Agreement signed with Denarius Metals Corp. in respect of US$6m Farm-in Arrangement for Toral and Equity Fundraising of £580,000 at 4.5p". If you want to know how many shares are in issue it's in the RNS: "Following Admission, the Company's total issued ordinary share capital will comprise 92,925,802 Ordinary Shares with voting rights". All there, nothing hidden, no dramas.