Europa Metals Ltd (LON:EUZ)

Europa Metals Ltd (LON:EUZ)

Share Price
0.01 p
0.0005 (3.70 %)
Market Cap
£1.68 m
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Europa Metals Ltd

Europa is a metals development company focused exclusively on European projects. We believe Europe, and in particular Spain, is an unrealized region for modern mine development and the opportunity to create new mines within a best practice social and environmental framework, near first class infrastructure, is significant.

Currently the Company is moving its Toral lead, Zinc and Silver...

Market: AIM:EUZ
52-week High/Low: 0.16p / 0.01p
Sector: Mining
Market Cap: £1.68 m
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Big Picture – A Deep Dive Examination of Europa Metals Ltd

Europa Metals Ltd Snapshot

Ferrum Crescent Limited is an Australian company listed on the Australian Securities Exchange (ASX), the AIM market of the London Stock Exchange (AIM) and the Johannesburg Stock Exchange (JSE).

The Company has a controlling interest in a South African company that holds the rights to an iron ore deposit in South Africa that is capable of producing iron ore of an exceptionally high quality. The Moonlight Iron Project is based on development of the Moonlight Deposit in Limpopo Province in South Africa.

The Moonlight Deposit consists of coarse-grained magnetite-quartz rocks that display the following features which set it apart from comparable magnetite deposits:

The ability to produce very high quality concentrates at a coarse grind size;
Exceptionally low level of detrimental elements in the concentrates;
Near surface mineralisation;
Low stripping ratios.
The mineralisation is close to surface and consequently represents a low stripping ratio target with consequential mining cost benefits. The contained iron within the JORC compliant Inferred, Indicated and Measured iron ore Resources is sufficient to exceed 20 years' production.

The Company plans to mine and beneficiate at Moonlight and then pump the iron ore slurry by pipeline to a manufacturing facility near a railhead at Thabazimbi in Limpopo. There, it is planned to manufacture direct reduction (DR) and blast furnace (BF) grade iron pellets for export and potentially local consumption. The planned production is 6 million tonnes per annum, and it is planned that the exported product will be railed from Thabazimbi to Richards Bay and then to customers. The Company has an offtake agreement in place with Swiss-based Duferco SA, and it is expected that its DRI grade product will be highly sought after by customers using electric arc furnaces to produce steel.

It is planned to complete a bankable feasibility study in the next yeat and a half.

The Company on 15 February 2016 entered into an option and sale agreement for a staged option fee of up to £22,500 with TH Crestgate GmbH, in respect of the  potential acquisition of GoldQuest, its indirect wholly-owned subsidiary. The Option and Sale Agreement affords the Company an exclusive option, valid until 31 July 2016, to acquire 100 per cent. of GoldQuest’s issued share capital (the “Option”), for an aggregate consideration of approximately £465,000 (based on the Company’s closing mid-market share price on 12 February 2016 of 0.145 pence per Ordinary Share), to be satisfied principally in cash and partly by the issue of new Ordinary Shares. The Option is exercisable entirely at Ferrum Crescent’s discretion.
GoldQuest holds licences covering 2,024ha in the Province of Leόn (the “Toral Project”) and in the Province of Galicia (the “Lago Project”), all such licence areas being located in northern Spain and having high prospectivity for lead and zinc.

In light of the Moonlight Iron Project now being progressed pursuant to the terms of the bankable feasibility study farm-in and joint venture funding arrangement with Business Venture Investments No. 1709 (Proprietary) Limited, Ferrum Crescent has been seeking to identify attractive new project opportunities, in the current conducive market conditions, whereby cost effective and targeted exploration expenditure has the potential to create visible and meaningful medium to long term value for the Company’s shareholders.

The Company believes that the prevailing market prices for lead and zinc will strengthen further, underpinned by an anticipated fall in market supply. Accordingly, it believes that the more advanced Toral Project, in particular, with significant exploration data already available and being located within a politically stable and historic mining region, represents a cost effective opportunity to enter this market sector.


2008 - 2010

  • 5,800 metres of reverse circulation drilling carried out and maiden resource estimated
  • Scoping study completed by ProMet Engineers Pty Ltd in Perth, Western Australia
  • Reverse takeover of ASX-listed Washington Resources
  • Completion of BEE acquisition
  • Admission to AIM market in London, and completion of a GBP10 million capital raising (approximately AUD16 million)
  • New development option decided for Moonlight Project


  • Core storage and processing facility constructed
  • Core cutting sampling and bulk density measurement now to be conducted on site, resulting in improved sample turnaround
  • Offtake agreement with Swiss based Duferco SA signed
  • Offtake for direct reduction and/or blast furnace product from iron ore projects in South Africa
  • Anticipated 4.5 million tonnes (mt) of iron ore pellets per year export to be produced (plus 1.5mt per year to be sold domestically) initially from Moonlight project
  • 990m of diamond core drilling and 13 holes totalling 1,600m of reverse circulation (RC) drilling completed
  • Definitive feasibility study ("DFS") progressed, including work on the metallurgical testwork programme, pipeline engineering and access studies, and identification of construction contractors and processing plant suppliers.
  • Admission to JSE in South Africa
  • The Mineral Corporation Consultancy (Pty) Ltd appointed for resource expansion and associated study


  • New JORC compliant resource at Moonlight Iron Ore Project of 307.8 million tonnes @ 26.9% Fe
  • Mining right covering the farms "Moonlight", "Julietta" and "Gouda Fontein" granted
  • New prospective targets identified south, east and west of the Moonlight Deposit
  • Moonlight Mining Right (granted in May 2012) executed and registered
  • 2,827 line km on 50m line airborne aeromagnetic survey completed and interpretation of the results of the high resolution survey confirms fresh exploration targets
  • Infrastructure solution analysis progressed with supplier discussions
  • Strong relationship with the local communities to be impacted by mining and with local municipalities
  • First tranche of BEE "flip" completed, resulting in transfer to Ferrum of the BEE partner's interest in the Moonlight Iron Ore Project and issue of Ferrum shares to that partner

Moonlight Iron Ore Project

  • 97% owned by Ferrum, with the remainder owned by local community trust
  • JORC compliant resource of 52.6Mt at 31.3% Fe in the Measured category, 83Mt at 27.4% Fe in the Indicated Resource category and 172.1Mt at 25.3% Fe in the Inferred Resource category
  • 20 year mine life supported
  • High resolution aeromagnetic survey confirms exploration upside
  • Mining Right granted
  • Metallurgical test work demonstrates high recoveries and extremely low contaminant levels
  • Comparative low energy levels likely for production- projects magnetite grain size coarse - production of a commercial concentrate will cost less and require less energy
  • Project concept involves mining and beneficiating at Moonlight, slurry pipeline to area close to railhead, manufacture of 6 Mtpa blast furnace and direct reduction iron grade pellets for export and domestic sale
  • Offtake agreement secured with Swiss-based Duferco SA, for sale of 4.5 Mtpa pellets for export and first right of refusal in respect of 1.5 Mtpa, if it is not sold domestically
  • Discussions with a number of potential strategic development partners underway, including technology suppliers and steel producers



Production profile concept

  • Contract, open-pit mining and concentrate production at Moonlight
  • Slurry concentrate pipeline to pelletising plant near railhead, with return water to Moonlight (100 - 220km), Lephalale and Thabazimbi preferred sites
  • Pelletising plant to produce iron ore pellets (68.5% Fe) for international and domestic markets
  • Planned production at 6 Mtpa DRI and BF grade pellets

he Board consists of the following executive and non-executive Directors:

Grant Button (Non-executive Chairman, Company Secretary)

Mr Button is a qualified accountant and has significant financial and other commercial management and transactional experience. Mr Button has over 25 years' experience at a senior management level in the resources industry. He has acted as an executive director, Managing Director, Finance Director, Chief Financial Officer and company secretary of a range of publicly listed companies. He was a non-executive director of the Company when it listed on the ASX in November 2005 and continued in that role until his resignation in November 2008. He is currently the Chief Executive Officer of Magnum Mining & Exploration Limited. Mr Button is chairman of the Ferrum Crescent Audit Committee and the Nomination Committee and is a member of the Remuneration Committee..

Laurence Read (Executive Director)

Laurence Read is a UK resident, and has sixteen years’ working with public and private companies in particular in the natural resources sector.

Evan Kirby (Non-executive Director)

Dr Kirby is a metallurgist with over 30 years of international experience in the mining sector.  He has held senior management positions with Impala Platinum, Rand Mines and Rustenburg Platinum Mines and worked as a director and technical consultant for a number of mining companies.  He is currently a director or Bezant Resources plc (AIM) and Nyota Minerals Lmited (ASX & AIM).

The Company is aware of the following shareholders holding 3% or more of the issued share capital of the Company:


26 May 2017


No. of Shares

% of issued share capital

Barclayshare Nominees Limited



Hargreaves Lansdown (Nominees) Limited <15942>



Lynchwood Nominees Limited <2006420>



Hargreaves Lansdown (Nominees) Limited <HLNOM>



Investor Nominees Limited <WRAP>



HSDL Nominees Limited



Beaufort Nominees Limited <SSLNOMS> 91,105,674 4.24

TD Direct Investment Nominees (Europe) Limited 78,250,021 3.64

The Bank of New York (Nominees) Limited <458514> 64,989,741 3.03


Block B 

Regent Hill Office Park 

Cnr Leslie and Turley Roads 




Postal Address South Africa: 

P O Box 877



Tel: + 27 11 265 9870

Fax: + 27 86 219 5701

Email: [email protected]



Ferrum Crescent Limited (ASX Code: FCR)

Suite 6, Ground Floor, South Mill Centre

9 Bowman Street

South Perth

WA 6151


Postal Address Australia:

PO Box 189

South Perth

WA 6951

Tel: +61 8 9474 2995 

Fax: +61 8 9474 2937

Email: [email protected] 




Computershare Investor Services Pty Ltd

Level 11, 172 St Georges Terrace

PERTH  WA  6000

Telephone:  +61 8 1300 557 010

Facsimile:  +61 8 9323 2033



Computershare Investor Services PLC

The Pavilions

Bridgwater Road




Computershare Investor Services Pty Ltd

70 Marshall Street


2001 South Africa

Nominated Adviser
Strand Hanson Limited
26 Mount Row
London WIK 35Q
United Kingdom

Beaufort Securities Ltd
131 Finsbury Pavement
London EC2A 1NT

Legal advisers to the Company as to English law

Joelson Wilson LLP
30 Portland Place
London W1B 1LZ

Legal advisers to the Company as to Australian law

Allen & Overy
Level 27
Exchange Tower
2 The Esplanade
Perth WA 6000

Legal advisers to the Company as to South African law

Malan Scholes Inc.
East Building, 85 Central Street
Houghton 2076

Legal advisers to RFC Ambrian

One Fleet Place
London EC4M 7WS

Reporting Accountants

RSM Tenon Audit Limited
66 Wigmore Street
London W1U 2SB


BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008

Competent Person

The Mineral Corporation Consultancy (Pty) Ltd
65 Homestead Avenue
Sandton 2021

Registrars – South Africa

Computershare Investor Services (Proprietary) Limited
70 Marshall Street
Johannesburg 2001

Registrars – Australia

Computershare Investor Services Pty Limited
Level 2
45 St Georges Terrace
Perth WA 6000

Registrars – Depositary Interests UK

Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol BS13 8AE

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