17th Sep 2024 08:48
(Alliance News) - Europa Metals Ltd announced on Tuesday it has signed a conditional term sheet to acquire Viridian Metals Ireland Ltd and its Tynagh brownfield for an undisclosed sum.
The Europe-focused lead-zinc and silver developer said the proposed transaction would constitute a reverse takeover, meaning it would need to apply for re-admission of its shares to AIM of the London Stock Exchange.
Europa said its shares will be suspended from this morning on AIM. Shares are not suspended on the JSE, pending further engagement with the South African stock exchange.
In Johannesburg, Europa Metals shares were flat at 50 rand cents on Tuesday morning.
If the proposed acquisition falls through, Europa will seek the lifting of its suspension from AIM.
The proposed deal is subject to "mutual" due diligence, shareholder approval and regulatory clearances.
The Tynagh project in Ireland comprises an advanced recycling and rehabilitation project that has 6.65 million tonne surface mineral resource.
In a separate filing, Europa announced the proposed sale of its 100% interest in the Toral lead, zinc and silver project to Denarius Metals Corp.
In November 2022, Europa entered into a definitive option agreement that gave Denarius two options to buy up to an 80% interest in Europa Metals Iberia SL, a wholly-owned Spanish subsidiary of Europa that holds the Toral project in the Leon Province, Northern Spain.
Denarius was granted a first option, exercisable until November 22, 2025, to subscribe for a 51% equity interest in Europa Metals Iberia.
Europa said it has signed a binding letter of intent with Denarius, which will acquire 100% of Europa Metals Iberia for CAD3.5 million in equity.
By Artwell Dlamini, Alliance News reporter
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