European Green Transition PLC (AIM: EGT) has struck an agreement granting a Cypriot mining company the exclusive right to acquire its copper project in northern Sweden, in line with the London-listed group's plan to refocus on revenue-generating green energy businesses.
The company said it has granted Recovery Metals Cyprus (RMC) a six-month exclusive option to purchase the Pajala copper project, which includes two exploration licences, Liviövaara nr 101 and Lehtosölkä nr 101, in the Norrbotten region. RMC will cover all due diligence costs during the option period.
The Pajala site, which spans just over 51 square kilometres, is thought to host an iron oxide copper gold (IOCG) system, a type of mineral deposit known for containing significant quantities of copper and gold.
Earlier exploration by Anglo American around 2000-2001 included nine drill holes and confirmed multiple copper intercepts, with one showing 5.45 metres at 1.23% copper and 1.13 grams per tonne of gold.
If RMC decides to exercise the option, the sale would be subject to the negotiation of a definitive agreement.
European Green Transition said there is no certainty that a transaction will be completed.
Cathal Friel, co-founder and non-executive chairman, said the deal marks “a significant step in the execution of our strategy to generate value from our mining portfolio”.
The Pajala project sits about 21 kilometres from the Kaunisavaara iron ore mine, benefiting from good infrastructure and access to renewable energy.
Friel said the potential sale reflects the group’s approach to monetising its mining assets while seeking opportunities to acquire and develop distressed, revenue-producing businesses that support Europe’s transition to clean energy.