European Green Transition (EGT) has entered into an exclusive option agreement with Recovery Metals Cyprus Limited to sell the Pajala copper project in Sweden.
The Pajala copper project is a potential iron-oxide-copper-gold target, with historical drilling confirming copper mineralisation across multiple intersections.
Anglo American, a previous operator, completed a nine-hole diamond drilling programme at the project, identifying broad intervals of copper mineralisation indicative of an IOCG system with the potential to host a significant copper deposit.
RMC is a privately held company incorporated in Cyprus focused on developing a portfolio of high-potential copper and gold projects in Europe. Its current portfolio comprises three fully licensed copper projects in Cyprus.
Under the terms of the option agreement with EGT, RMC will fund all due diligence activities during the six-month option period.
"We are pleased to have signed an exclusive option agreement with RMC for the proposed sale of our Pajala copper project in Sweden, marking a significant step in the execution of our strategy to generate value from our mining portfolio,” said Cathal Friel, co-founder and non-executive chairman of European Green Transition.
“The agreement provides RMC with sufficient time to complete its due diligence on the project, supported by their team who have prior operational experience in the region. Copper prices are approaching record highs, underpinned by limited supply and strong market fundamentals. Growing investment in electrification and clean energy technologies together with policy measures such as the EU Critical Raw Materials Act which seeks to ensure a stable supply of critical minerals to the European market, is driving sustained demand for both copper and rare earth elements, reinforcing the potential strategic importance of EGT's mining assets within the European supply chain. This potential transaction reinforces our approach to capital allocation as we continue to focus our resources on monetising our existing mining projects and acquiring and developing distressed, revenue-generating businesses across a diverse range of sectors."
Hear more in today's interview with CFO, Jack Kelly.
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Good to see European Green Transition beginning to transact on its mining assets, at a time when the commodities price environment is improving. Will this deal presage a bigger transaction at Olserum? Well, rare earths are certainly much in the news these days, so you wouldn’t bet against it.