Denarius Metals Corp. has announced the signing of a binding letter of intent (LOI) to acquire 100% of Europa Metals Iberia S.L., a subsidiary of Europa Metals Ltd. This transaction involves the Toral Zn-Pb-Ag Project located in León Province, Northern Spain, and is expected to close by October 31, 2024.
Executive Chairman and CEO Serafino Iacono stated, “This acquisition aligns with our vision of producing low-carbon metals within the EU, supporting the transition to renewable energy and battery technologies. We are confident in the Toral Project’s potential as a long-life underground mining operation, which may provide material for our Aguablanca Project’s processing plant.”
The company previously entered an option agreement with Europa in November 2022, granting it the right to acquire up to an 80% stake in EMI. Since early 2023, Denarius has been actively exploring the Toral Project, investing approximately US$3.1 million and completing a drilling campaign that successfully intersected mineralization in high-grade areas.
The acquisition price includes the funds advanced under the loan agreement and an additional CA$3.5 million, to be settled through the issuance of 7,000,000 common shares at CA$0.50 per share. This share issuance will be subject to a hold period of four months plus one day. As part of the transaction, Europa will ensure EMI has no outstanding liabilities prior to closing, and both the option and loan agreements will be terminated upon completion.
The transaction is contingent upon receiving necessary board, shareholder, and regulatory approvals, including those from Cboe Canada Inc.
