RNS - Budget agreed with Denarius22 Mar 2023 14:01
Toral JV Update: Initial US$1.8m budget agreed with Denarius
Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce that an initial budget for planned expenditure on the Company's wholly-owned Toral Zn-Pb-Ag Project (the "Toral Project" or "Toral"), in the León Province, north-west Spain, of approximately US$1.8m for a 12 month period has recently been agreed between the Company and its joint-venture ("JV") partner, Denarius Metals Corp. (TSXV:DSLV; OTCQB: DNSRF) ("Denarius"). The budget will principally be applied to a combination of confirmatory and infill drilling within the indicated resource block outlined to date at Toral utilising up to two rigs which is scheduled to commence at the end of this month.
Further to the receipt of shareholder approval in respect of the definitive agreements in relation to the JV at a general meeting of the Company held on 30 December 2022, a sum of US$100k was paid to its wholly-owned Spanish subsidiary, Europa Metals Iberia S.L. ("EMI"), which facilitated the advancement of the planned mining licence application ("MLA"). Following a successful capital raising by Denarius earlier this month, a further US$550k has recently been advanced to EMI by Denarius to enable timely completion of the planned initial work programme in accordance with the timeframe set out under the definitive JV agreements.
Highlights:
· Initial Budget: Budget of US$1.8m for a 12 month period agreed with JV partner in respect of Toral which will be utilised by EMI for:
o Up to 7,000m of additional drilling to cover:
§ confirmatory drilling
§ infill drilling on the known indicated resource area
o Desktop review and preparatory application work on potential additional surrounding permits
o Resource update
o Ongoing working capital requirements
· Mining Licence Application: Work on the MLA commenced in January 2023 and is now at an advanced stage:
o Mining methods selected
o Site location for major facilities and plant site defined
o Heritage and archeological studies underway
o Final environmental studies underway
Commenting today, Myles Campion, Executive Chairman and acting CEO of Europa Metals said:
"Denarius recently completed a financing round which has triggered the payment of an additional US$550k to EMI further to the initial US$100k received following the approval by Europa Metals' shareholders of the definitive agreements for the JV late last year.
Accordingly, we can now proceed aggressively with an initial 12 month work programme for Toral alongside the MLA, which will be conducted by the Europa Metals' team and supervised by Denarius' technical team. The programme will progress this high-quality base metals project which benefits from the ongoing support of regional governments and local communities.
Europa Metals' management team also continues to actively identify, evaluate and engage with third parties with res
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