ETM secures Europe's only tin-tantalum-niobium mine
Penouta has €28m (A$49.8m) of investment by the previous owner and is Europe's only recent producer of tin and tantalum
ETM is raising $10m via a strategic placement to support the acquisition and is also undertaking a $3M Share Purchase Plan
Special Report: Energy Transition Minerals has been confirmed as the successful bidder for the Penouta tin-tantalum-niobium mine in Galicia, Spain, giving it a compelling entry point into a near-term production opportunity for these critical minerals in Europe.
The company's offer of €5.2 million (A$9.2 million) was confirmed as the successful bidder for the Penouta mine and processing plant, which is being acquired within the insolvency proceedings of Strategic Minerals Spain.
Penouta was last operated in 2024 and is the only developed tin-tantalum-niobium project in the European Union.
This makes it uniquely aligned with the EU's goal to increase critical mineral production and enhance supply chain security.
Energy Transition Minerals' (ASX:ETM) successful bid will expand the company's strategy beyond a single asset in Greenland, its Tier-1 Kvanefjeld rare earths project, into a multi-asset, EU-based operator.
ETM says this represents a deep value opportunity, with the mine and processing plant being acquired for well below the €28m (A$49.8m) cost of historic investment including processing infrastructure.
The company will acquire all mining and associated rights from the project including Authorisation to exploit the Section B Concession.
Re-compliance of the Section C Concession will be required to enable full-scale production.
Completion of the transaction is subject to formal documentation and compliance with various Spanish regulatory requirements, and other conditions precedent.
The Penouta project. Pic: Energy Transition Minerals
Huge opportunity
ETM Managing Director Daniel Mamadou said securing the Penouta tin-tantalum-niobium mine is a huge opportunity for the company as it is the only recent producer of these critical metals in Europe, making it a uniquely strategic asset.
'This acquisition represents a compelling entry point into a near-term production opportunity for tin, tantalum, and niobium, all of which are critical to Europe's industrial and technological ambitions,' he added.
'Importantly, Penouta also stands as the only current source of tantalum and niobium in the European Union, adding a key ethical dimension to sourcing conflict-free critical minerals.
'The upside for tantalum, particularly as an essential input for the semi-conductor industry, further enhances the strategic value of the acquisition.'
Mamadou added that ETM was drawn to Penouta due to its significant established infrastructure and its deep alignment with Spain's critical minerals strategy.
'Our in-country team has a strong record in sustainable development, giving us confidence in a swift and responsible start.'
Penouta mine
ETM believes the Penouta mine represents a truly differentiated entry point into the heart of Europe's critical minerals supply chain.
As the only advanced tin-tantalum-niobium deposit in the EU, it provides a significant geopolitical advantage in terms of the production of these critical minerals.
The presence of existing process infrastructure, historic offtake relationships and a defined mineral resource will enable the company to leverage legacy investment and prior technical work to accelerate project development.
ETM also believes the acquisition economics of the project represent a compelling proposition, with the purchase price of A$9.2 million representing a deep discount against the nearly A$49.8 million of past capital invested by Strategic Minerals since 2012.
This valuation gap and existing site infrastructure such as the 2Mtpa crushing-grinding-gravity separation processing plant tailored to its polymetallic ore creates an attractive proposition even before the value of the tailings and new mining areas have been realised.
Penouta has a history of mining dating back to Roman times for both metals and industrial minerals.
In a modern context, the Penouta tin-tantalum-niobium deposit was first developed in the early 1900s which saw intermittent production through to the mid-20th century. The most significant progress during this period was by industrial conglomerate RUMASA from the 1970s to 1983.
During that period, it delivered significant quantities of tin concentrate to European smelter using conventional open-pit methods and gravity processing circuits.
Declining tin prices and operational challenges led to a suspension of primary extraction, leaving behind well-maintained infrastructure and a thoroughly characterised resource base.
Penouta currently has a Foreign Mineral Resource calculated by SRK Consulting in 2021 comprising an indicated and measured resource of 76.3Mt grading 149ppm tantalum pentoxide equivalent (443ppm tin and 73ppm tantalum).
It also includes an inferred 43-101 resource of 57Mt at 129ppm Ta2O5.
The project also hosts engineered tailings storage facilities, and some utility connection while existing roads provide efficient access to the Port of Vigo about 230km and rail links support bulk concentrate transport to European and international markets.
Four legacy employees of Strategic Minerals, who were identified as being critical to the ongoing operations, will remain to help operate the project.
Strategic placement
ETM has also agreed to undertake a strategic $10 million placement by way of subscription from existing shareholder OCJ Investment to support the acquisition and strengthen its balance sheet.
OCJ will own approximately 15.5% of ETM following settlement of the placement and have voting power of approximately 17%.
ETM is also undertaking a $3 million SPP to existing shareholders at an issue price of $0.042 per share.
This article was developed in collaboration with Energy Transition Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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