Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce its unaudited results for the half-year ended 31 December 2021 (the 'Half-Year Financial Report').
Contact:
Dan Smith
Tel: +61 417 978 955
Accordingly, the Europa Metals team has progressed Toral from being a collection of historical data points to a project with the potential for a future development with good margins at long term average revenue pricing within a first world jurisdiction with world class infrastructure.
Over the coming period, the Board will continue with its endeavours to establish a clear pathway forward for Toral to deliver future returns for shareholders. In late October 2021, the Company secured a GBP1.5m (gross) equity financing, through its new broker, WH Ireland Limited ('WH Ireland'), with the net proceeds to be utilised to further progress and de-risk Toral and for general working capital purposes, but also to add additional focus on business development. To this end, the management team has reviewed over 10 projects, with two being discussed and evaluated at Board level, and we intend to continue such activity and to identify, investigate and assess additional opportunities of potential interest. Further updates will be provided as and when appropriate.
CDTI Loan Funding
On 19 October 2020, the Company announced that following an extensive submission process, an interestfree loan by way of a grant of EUR466,801.50 (the 'Grant') had been awarded to the Company by the Centre for the Development of Industrial Technology (CDTI) for use towards research and development ('R&D') at Toral. The CDTI is a Public Business Entity in Spain, under the auspices of the Ministry of Science and Innovation, which fosters the technological development and innovation of Spanish companies. The Grant is categorised as a partly refundable loan (with a nil per cent. interest rate) with the funds received to be allocated towards the development of R&D technologies relating to the recording and correction of drillhole deviation at the Toral Project.
Application for the Grant was made further to ongoing work by Europa Metals and the AIR Institute, linked to the Salamanca University, and drilling contractors Sondeos y Perforaciones Industriales de Bierzo SA ('SPI'). The Grant monies can be drawn down by Europa Metals in up to three tranches subject to certain, pre-defined, operational milestones being met, with the first tranche of EUR163,380.53 received by the Company prior to the last financial year end. On 19 July 2021, the Company announced that it had completed the requisite work and collated and submitted all the relevant documentation to the CDTI in relation to the Stage 1 milestone of the Grant.
The core objectives of the Innovation Programme are to retrieve and process data from drilling at Toral in order to develop algorithmic software for use in future exploration campaigns to correct drilling deviation. Biannual repayments of EUR21,822 begin in 2024, running for 7 years until 2031, with a fixed interest rate of nil per cent. On 8 November 2021, the Company announced that the CDTI had approved the requisite documentation submitted in relation to the Stage 1 milestone and that the Company had therefore drawn down and received the second tranche of the Grant being EUR158,628.60.
Stage 2 work will see Toral continue to be used as a live testing environment by the partnership as the University of Salamanca continues its analysis and any future commercial benefit from an eventual product will be shared by the partners. On completion of the Stage 2 work, currently expected to occur during 2022, a third, and final, tranche of EUR144,792.37 will then be available for draw down subject to a review by the CDTI confirming that the requisite criteria of the innovation programme have been met. Once the funds have demonstrably been spent on appropriate R&D exploration activity at the Toral Project by the Company, 70 per cent. of the total Grant will be repayable with the balancing 30 per cent. then not required to be repaid
EUROPA METALS LTD 
