Energy Transition Minerals Ltd (ASX:ETM) has secured foreign direct investment approval from the Spanish Government for its proposed acquisition of the Penouta tin-tantalum mine, marking a key step towards completing the deal.
The approval clears a major regulatory requirement for ETM to acquire what it sees as a strategic critical minerals asset in Spain. It also confirms the company’s proposed investment in the Penouta mine and processing plant meets Spanish regulatory and national security requirements, while endorsing ETM’s financial capacity and suitability to operate strategic assets in the country.
With foreign investment approval now in hand, and following the recent execution of a land access agreement with the owners of the Dehesa da Chanca Community of Woods, the acquisition is now subject only to the formal transfer of the mining licences to ETM Spain by the relevant authorities.
Completion is expected during the current quarter.
For ETM, Penouta represents an entry point into a strategic European critical minerals project, with tin and tantalum both regarded as important commodities in industrial and technology supply chains.
Managing director Daniel Mamadou said the foreign investment approval and land access agreement marked a major step in establishing the company’s long-term presence in Spain and reflected support for investment aimed at developing strategic critical minerals sources for Europe’s energy transition.
“Securing FDI approval, alongside the agreement we have finalised with the Dehesa da Chanca community, represents a major step forward in establishing our long-term presence in Spain. We are encouraged by the support shown by the Spanish Government for foreign investment into the country to facilitate the development of strategic sources of critical minerals for Europe’s energy transition.”
Focus turns to recommissioning strategy
Once the acquisition is completed, ETM plans to undertake a detailed operational review to determine the best path to recommission the Penouta mine.
That review is expected to shape a broader development strategy centred on environmental stewardship and local participation. The company said it intends to apply best-practice environmental, social and governance standards to the project’s development and recommissioning, while also prioritising local employment and skills development to support long-term sustainability.
ETM has also flagged plans to work closely with local stakeholders as it moves to advance the project, with the aim of delivering shared and sustainable outcomes.
The latest approval therefore shifts Penouta closer to formal completion and sets up the next phase for ETM as it looks to bring the Spanish tin-tantalum asset back into operation.
About ETM
ETM is focused on building and financing supply chains for metals and materials considered critical to global decarbonisation, with an emphasis on high-quality mineral assets.
The company’s project portfolio spans Western Europe, North America and Greenland. Its key assets include the Kvanefjeld Rare Earth Project in Greenland, regarded as one of the world’s largest undeveloped rare earth deposits, and the proposed acquisition of the Penouta tin-tantalum-niobium mine in Galicia, Spain.
ETM has been involved in the development of Kvanefjeld since 2007, although its right to receive an exploitation licence for the project remains subject to ongoing legal proceedings in Greenland and Denmark.
The company is also advancing the early-stage Villasrubias lithium-tantalum project in the Castile and Leon region of Spain, along with the Solo and Good Setting lithium projects in Quebec’s James Bay region. In addition, ETM continues to review other critical minerals opportunities globally.