Europa Metals Ltd (LON:EUZ) has completed the requisite work and collated and submitted all the relevant documentation to the Spanish Government Centre for the Development of Industrial Technology (CDTI) in relation to the Stage 1 milestone of its €466,801.50 innovation grant, details of which were initially announced on 19 October 2020.
Following receipt of an initial tranche of €163,380, Europa Metals has worked closely with its innovation partners, the University of Salamanca (Air Institute) and the drilling contractors Sondeos y Perforaciones Industriales de Bierzo SA (SPI) in recording and analysing data from the ongoing 2021 pre-feasibility study drilling campaign at the Toral zinc and base metals project.
Using new down-hole monitoring technologies, developed by SPI, the University of Salamanca has now compiled a sufficient data set from over 2,800 metres of diamond drilling at Toral, to create an initial, correctional algorithm to be further researched to move towards potential commerciality.
Any future commercial benefit from an eventual product will be shared by an innovation partnership comprising Europa Metals, the University of Salamanca and SPI.
The CDTI will now undertake its formal review process, following which the Europa Metals intends to draw down Stage 2 funds of €158,628.60.
"The work conducted with our innovation partners the University of Salamanca and SPI has been outstanding and we are delighted to have completed and submitted the necessary documentation on schedule, in respect of the Stage 1 milestone requirements as outlined under the €466,801.50 grant, awarded to us by the CDTI,” said Europa chief executive Laurence Read.
“I would like to thank CDTI and the Spanish Ministry of Science and Innovation for backing this exciting project as we continue to support the University of Salamanca's investigation into new, commercial, deviational correction algorithms for potential application to diamond drilling campaigns.”
The CDTI is a Public Business Entity in Spain, under the auspices of the Ministry of Science and Innovation, which fosters the technological development and innovation of Spanish companies. The grant made to Europa Metals is categorised as a partly refundable loan with a zero interest rate.
Europa Metals can draw the grant monies down in up to three tranches subject to certain, pre-defined, operational milestones being met. The core objectives of the programme are to retrieve and process data from the Toral drilling campaign in order to develop algorithmic software for use in exploration campaigns to correct drilling deviation. Biannual repayments of €21,822 begin in 2024, running for 7 years until 2031.
Europa Metals anticipates that the grant will enable it to apply for reductions in taxes payable, relating mainly to labour costs, and is satisfied that the terms of the grant do not prevent it from participating in other grant application processes, save where there is a specific technological overlap.
Once the funds have demonstrably been spent on appropriate R&D exploration activity at the Toral project by the company, 70 per cent of the total grant will be repayable with the balancing 30 per cent not required to be repaid.