Europa Metals (AIM:EUZ) has today raised £2m which the group will use to complete key aspects of a pre-feasibility study at its wholly owned Toral lead-zinc-silver project in Spain.
The European-focused lead-zinc and silver developer raised £2m, issuing 15,686,274 new ordinary shares at an issue price of 12.75 pence per share to certain and existing investors.
The Issue Price represents a discount of around 22.7% to its 16.5p closing price on Tuesday.
The proceeds from the fundraising will be used primarily towards completing certain components of a Pre-Feasibility Study (PFS) at Toral which is located in the Castilla y León region, northern Spain, as well as for the Company's general working capital requirements.
“With the completion of this significant Fundraising, Europa Metals can see a clear pathway to completing major items that will form part of a PFS,” said Executive Chairman of Europa Metals, Myles Campion.
The PFS will include hydrogeological studies to ascertain sub surface water conditions as well as increased drilling targeting in the confidence level of the overall mineable resource for Toral. Ultimately, Europa believes the PFS will demonstrate the viability of the Project.
Shares in Europa Metals have climbed over the past month from 5p and closed at 16.5p on Tuesday afternoon.
It said a PFS will advance its understanding of metallurgy and hydrogeological conditions to define the parameters for waste management and environmental considerations, ‘as well as potentially upgrading areas of the current resource into higher categorisations.’
Last week, Europa published an updated resource model, estimating a 3.8Mt indicated resource at 8.3% zinc equivalent and identifying Toral as a potentially high-grade producer.
Europa recently commissioned metallurgical work and ore sorting analysis which is to be carried out by Wardell Armstrong International and Bara Consulting, respectively.
From this work Europa will obtain updated preliminary economic parameters for the Toral, taking into account the work completed and data obtained since the 2018 Scoping Study.
Europa also awaits a renewed Investigation Permit for a further three-year exploration term and is currently in the process of seeking to secure certain EU/regional grant monies.
"We continue to endeavour to advance Toral as a realisable, robust future source of lead, zinc and silver with excellent recoveries and grade, situated within a proven mining region of the EU with well-established road, rail and power infrastructure,” said CEO, Laurence Read.
For more news and updates on Europa Metals: