Europa Metals Ltd (AIM:EUZ, JSE:EUZ) reported interim results showing US$1.45mln of cash and equivalents at the end of December, which was this month topped up with a payment of US$550,000 from Denarius Metals Corp, its partner on the Toral base metals project in northern Spain.
The payment from the Toronto-listed Denarius followed the agreement of an initial US$1.8mln budget for planned expenditure on Toral.
Adding to a US$100,000 initial payment received during the first half of its financial year, the monies will facilitate Europa to submit its planned mining licence application, which is scheduled to be submitted by 31 July to the junta of Castilla y Léon, and enable timely completion of the planned initial work programme, said Myles Campion, executive chairman and interim-CEO, in a statement alongside the results.
As part of the shareholder-approved agreement late last year, Denarius has the right to acquire up to 80% ownership of Europa's wholly owned Spanish subsidiary that holds the Toral project in return for up to US$6mln of funding and project expenditure over a four year period.
For the half-year to 31 December, Europa cut net losses after tax to A$1.2mln from A$1.4mln a year earlier.
"As well as progressing our flagship project, our team has continued to actively identify, evaluate and engage with third parties with respect to our search for suitable additional assets and new project opportunities with the potential to deliver value for all of our stakeholders," said Campion.