Europa Metals Ltd (AIM:EUZ, JSE:EUZ, OTC:EOPAF) initiated a corporate review to focus on group costs and to examine the potential acquisition of new projects, the lead-zinc and silver developer said alongside an operational update.
The cost and strategic review will focus on overall group costs, including board remuneration and the optimisation of workflows on its Toral lead-zinc-silver project.
It has also created a transaction review team to assess potential new projects and opportunities alongside the development of Toral.
The AIM-listed company also said it is seeking potential asset financing through federal and regional programmes in Spain, home to the Toral project. Earlier this month, it received the second tranche of an innovation grant from the Spanish government.
READ: Europa Metals gets second tranche of innovation grant from Spanish government
On the operational side, preparations for a resource and geotechnical drilling programme, which will focus on areas around the expanded indicated resource at Toral, are planned to start in the first quarter of 2022, it said.
The group also said work was progressing regarding the potential use of dry stack tailings, which should help underpin low water usage, and concerning the review of the potential for waste design/storage and a reclamation initiative involving local, disused quarry sites.
It has also undertaken an internal review of Toral’s proposed early years' production profile, based on 2021 drilling results and new indicated resource area, to seek to enhance its payback period.
"Europa Metals is taking a series of steps to ensure the allocation of funds for maximum effect at its Toral project whilst simultaneously pursuing the potential acquisition of new, value accretive projects for the company," said chief executive Laurence Read. "We are also undertaking a full review of the group's cost base, including board level remuneration packages, and establishing a clear strategic pathway through the remainder of 2021/2022 to refocus our efforts on delivering value for shareholders."