Preparing For Spanish Drilling Campaign
Elementos Limited (ASX: ELT) has elected to retain 100% ownership of its projects including the company’s flagship Oropesa Tin Project in Spain following its decision to withdraw from a proposed 1% Gross Revenue Royalty (GRR) deal with Canada’s Electric Royalties for C$500,000 cash and 1.5 million common shares.
The company said any decision to enter into a royalty structure will now be delayed until a Defintive Feasibility Study at Oropesa is completed, a move Elementos chairman Andy Greig described as “financially prudent”.
“We are confident that our proposed drilling and optimisation plan at Oropesa, which is designed to increase the project’s overall resource, annual production and mine life, will unlock significant value in the project,” Mr Greig said.
“Retaining full ownership of Oropesa at this time ascribes maximum value to shareholders given the strengthening opportunity to create value-uplift as the project is advanced towards full feasibility and development.
“Elementos is currently pursuing new financing plans and has received interest from a number of parties interested in funding Oropesa’s progression along the value chain,” he said.
A recently completed Economic Study has demonstrated Oropesa’s attractive economics as a globally signifcant new tin development with a prospective annual production of 2,440 tonnes over a 14-year mine life.
At a tin price of US$19,750/tonne, the mine could potentially generate an annual gross revenue of more than US$48 million against a forecast operating cost of US$28 million per year or cash cost of US$11,800/tonne of metal. The estimated capital development cost is US$52.2m including a 20% contigency.