TIDMEUZ
RNS Number : 6239Z
Europa Metals Ltd
26 January 2022
26 January 2022
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Corporate & Operational Update
Europa Metals, the European focused lead, zinc and silver
developer, is pleased to provide a corporate and operational update
further to the cost and strategic review announced on 18 November
2021 and including details of the planned work during the first
half of 2022 at the Company's wholly owned Toral lead, zinc and
silver project in the Castilla y León region, Spain ("Toral" or the
"Toral Project").
Corporate
Further to the Board's comprehensive internal review process,
the Company is implementing a cost reduction strategy in order to
maximise the deployment of existing cash resources on both the
Toral Project and the identification and assessment of potential
new projects and opportunities for the Company.
Accordingly, pursuant to the cost reduction programme, with
effect from 1 January 2022 three of the Company's existing
directors (being Messrs Read, Campion and Kirby) (together, the
"Participating Directors") have agreed to the deferral/accrual of
50 per cent. of their director remuneration (comprising consulting
fees and/or salaries) in respect of the 2022 calendar year, with
such accrued remuneration to then be settled via the issue of new
ordinary shares in the capital of the Company ("Ordinary Shares")
(the "Proposed Fee Deferral and Conversion").
Under the terms of the Proposed Fee Deferral and Conversion, the
following mechanism is to be used to determine the quantum of
shares to be issued to the Participating Directors in lieu of the
cash remuneration to which they would otherwise have been
entitled:
- 50 per cent. of each individual Participating Director's
fees/salary will accrue from 1 January 2022;
- Accrued fees/salaries will be converted into new Ordinary
Shares, with accruals for the period from 1 January 2022 to 30 June
2022 expected to be converted and the requisite shares issued in
July 2022, and accruals for the period from 1 July 2022 to 31
December 2022 expected to be converted and the requisite shares
issued in January 2023; and
- The total number of new Ordinary Shares to be issued and
allotted in July 2022 and January 2023 in settlement of the monthly
amounts accrued is to be determined by applying the relevant
monthly volume weighted average price ("VWAP") for the Company's
Ordinary Shares on AIM and relevant month end AUD:GBP exchange
rate, as applicable.
The proposed issue of Ordinary Shares to the Participating
Directors pursuant to the terms of the Proposed Fee Deferral and
Conversion, as detailed above, is deemed to constitute a related
party transaction pursuant to Rule 13 of the AIM Rules for
Companies. Accordingly, the Company's independent director for the
purposes of such share issues, being Daniel Smith (who is not
participating), having consulted with the Company's Nominated
Adviser, Strand Hanson Limited, considers that the terms of the
proposed share issues to the Participating Directors under the
Proposed Fee Deferral and Conversion are fair and reasonable
insofar as the Company's shareholders are concerned.
Certain additional cost reductions have been identified and
implemented at the Group level with further cost savings intended
to be rolled out over the coming months.
Whilst the Toral Project is already at an advanced stage, the
Company is initiating a further series of work programmes,
including additional geotechnical and resource drilling, in order
to continue to de-risk it. As announced previously, a transaction
review team has also been established to assess a series of
potential new projects and opportunities, primarily in the precious
metals and energy sectors, in order to determine whether deployment
of our exploration expertise on new assets could potentially
generate significant additional value for shareholders.
Operational
Ore sorting testwork is now underway by TOMRA, a leading
provider of ore sorting technology based in Germany, which is being
overseen by Wardell Armstrong International Ltd, Cornwall ("WAI").
The ore being sorted is from the upper zone material retrieved from
the Company's 2021 drilling campaign, which included four
successful daughter holes, in order to assess and determine the
maximum efficiencies for recovery and concentrate processing in the
early years of the future Toral production profile. Following
completion of the testwork, waste testing will commence to
investigate the suitability of potentially implementing a low
water, dry stack tailings model that can backfill into the future
mined areas of Toral and utilise surrounding, disused quarry sites,
as part of a reclamation strategy being developed with local
stakeholders.
A further limited geotechnical and resource drilling programme
is also planned to commence during the current quarter.
Geotechnical drilling and studies will initially serve to determine
ground conditions at several potential plant sites, whilst ground
assessment work has begun at a disused quarry site identified for
potential reclamation. Resource drilling will then seek to
incrementally expand the Company's pre-existing 5.9 million tonne
Indicated resource estimate.
Commenting today, Laurence Read, CEO of Europa Metals, said
:
"At the start of 2022 our clear focus is on delivering
shareholder value by continuing to advance Toral in a
cost-effective manner and delivering on a work programme designed
to further de-risk the project and maximise the efficiency of the
proposed early years' production profile.
"Our cost-cutting programme aims to ensure that our resources
are directed as far as possible on project related expenditure and
existing operations, as well as the evaluation of potential new
complimentary projects and opportunities.
"We have a valuable asset in Toral which the Board does not
currently believe to be fully recognised and reflected in the
Company's share price and by seeking to identify and secure a
potential new attractive project(s) to add to our portfolio we will
endeavour to add value for shareholders whilst continuing to drive
Toral forward."
For further information on the Company, please visit:
www.europametals.com
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
info@europametals.com
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
WH Ireland Limited (Joint Broker)
Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather
T: +44 (0)20 7220 1666
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050
Questco Corporate Advisory Proprietary Limited (JSE Sponsor)
Sharon Owens
T: +27 (11) 011 9212
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
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END
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January 26, 2022 02:00 ET (07:00 GMT)
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