Elementos (ASX:ELT) has executed a binding call option agreement to acquire a 50% stake in Iberian Smelting for €3.63 million ($6.47 million).
The agreement, which is through its wholly owned subsidiary Spain Tin Smelting, holds a two-stage option, with each option hosting a five-year exercise tenure, offering the company interest in the Robledallano smelting and refining facility in Extremadura, Spain.
Already paying €80,000 on the signing of the term sheet and the execution of the binding agreements, Elementos will be required to pay another €475,000 around June 2026 upon precedent conditions being satisfied, as well as another €620,000 six months later.
Elementos will pay €1.62 million for the first 30% from existing shareholders for the option-one exercise, followed by an additional €830,000 to acquire the remaining 20%.
CRM Synergies is the majority shareholder of Iberian Smelting, running tin smelting, refining, and solder manufacturing facilities in Brazil, Mexico, and Spain, as well as sales and recycling offices in North America and China.
Elementos intends to deliver tin concentrate produced from its Oropesa Project in Spain to the Robledallano facility for it to be smelted and refined into tin metal ingots.
An Elementos subsidiary will then streamline tin metal ingots produced to be commissioned through the European and North American markets.
Elementos Managing Director Joe David says the execution of this agreement will allow the company to benefit from the economic, strategic, and political benefits that come with being the only primary tin supplier in the European Union.
“Establishing a vertically integrated (mine-to-metal) tin supply-chain within Europe, propels Elementos down the value chain into a refined tin producer, selling tin metal for a premium to European and North American buyers,” David says.
“The ‘domestic’ production of critical minerals, from both primary ore and recycling materials, from within the European Union is a clear goal of the legislated Critical Raw Material Act by the EU parliament, which is closely reflected by the aspirations of the Spanish Government.
“The Robledollano smelter acquisition is fully aligned with these political mandates and places Elementos as a crucial part of metal security for the European Union.”
CRM Synergies Director Manuel Alonso Lopez says the agreement is another major step ahead in its mission to lead the way in the circular economy.
“Our two companies both recognised the unique opportunity we had to bring together a Spanish tin mine and smelter, so today is a happy day for both parties as we commit to this business partnership,” says Lopez.
“The synergies between a fully integrated Spanish tin mine-to-metal operation are more relevant than ever, with global volatility and tin supply sending shockwaves around the global industry.
“The partnership we have formed today will be good for CRM, good for Elementos, good for Spain and good for the European Union.”
Lopez says CRM is a proud Spanish company that has established itself as a significant independent player in the global smelting, refining, and downstream solder manufacturing and sales market.
“Partnering with a future producing tin miner like Elementos, via Iberian Smelting, will allow us to grow further and secure a larger market share of the growing tin market,” he adds.
Trading Economics reports tin was priced at US$37,060 per tonne as of 13 October, representing a monthly increase of 7.09%.
Elementos is a tin explorer focused on developing its assets in Australia and Spain.
Write to Maddison Elliott at Mining.com.au
Images: Elementos
