Energy Transition named recommended bidder for Spain’s Penouta mine
ASX-listed Energy Transition Minerals said on Friday that its Spanish subsidiary had been named the recommended preferred bidder for the Penouta tin/tantalum/niobium mine in Galicia, Spain.
ETM Spain, a wholly owned unit of the Australia-based company, was selected by a court-appointed administrator following a formal insolvency auction process for the assets of Strategic Minerals Spain, which previously operated the Penouta mine.
The recommendation now advances to a live auction scheduled for July 29. If no higher bid emerges or if ETM Spain retains its lead, the Galician court overseeing the administration is expected to confirm the acquisition by October.
The proposed consideration totals up to €3.6-million (A$6.4-million), including a fixed payment of €2.5-million, a conditional payment of up to €1-million dependent on a second-ranking mortgage resolution, and €100 000 to cover liabilities for retained employees.
A €500 000 deposit has been lodged and may be refunded if ETM Spain is not declared the winner. However, if the bid is withdrawn after court approval or if foreign direct investment approval is denied, the deposit and monthly care costs will be forfeited.
As part of the proposed deal, ETM Spain also commits to cover up to €1.2-million in care-and-maintenance costs over a 12-month period starting from the date mining permits are conditionally transferred.
The Penouta mine includes Section B, which is fully permitted, and Section C, currently suspended and under appeal.
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