Toral, located in the Castilla y León region of northern Spain, is the company’s flagship asset and represents an opportunity to deliver a robust European mining operation.
The share placing sees some 15.68mln new shares issued at a price of 12.75p each, with 15.52mln of the shares being sold to existing and new investors by broker Turner Pope Investments and 156,862 shares taken up by the company’s directors.
“With the completion of this significant fundraising, Europa Metals can see a clear pathway to completing major items that will form part of a PFS,” Myles Campion, Europa executive chairman said in a statement.
“The net proceeds will enable us to continue the efficient work that our team has been carrying out at Toral and increase our level of activity at site to move the project forward in respect of the key workstreams outlined.”
The funds will specifically support hydrogeological studies to ascertain subsurface water conditions, new drilling to increase resource confidence levels for the mineable area, and further metallurgical, geotechnical, and environmental programmes.
It comes as the company awaits the renewal of its investigation permit for a further three-year exploration term.
Campion and chief executive Laurence Read both participated in the funding, each subscribing for 78,431 shares. Following admission, Campion and Read will retain shareholdings representing 0.51% and 0.26% respectively.
“I look forward to announcing further updates shortly from work already in progress including metallurgical and ore sorting analysis and thereafter new preliminary economics for the Toral Project, updating the parameters in the 2018 Scoping Study to reflect the significant work completed since its publication,” Read said.
“We continue to endeavour to advance Toral as a realisable, robust future source of lead, zinc and silver with excellent recoveries and grade, situated within a proven mining region of the EU with well-established road, rail and power infrastructure.”
He added: “The Fundraising has been successfully completed by Turner Pope following, inter alia, the company’s recent share consolidation and a series of operational updates pertaining to, amongst other things, a new resource estimate, and appointment of a marketing and sales agency to progress the potential future concentrate sales strategy for Toral.