Energy Transition Minerals (ASX:ETM) is acquiring the Penouta Tin-Tantalum-Niobium Mine in Galicia, Spain, after being recommended by the court-appointed administrator to be the preferred bidder for Strategic Minerals Spain (OTCQB:SNTAF).
The Penouta Mine, located in the municipality of Viana do Bolo, is currently the only tantalum and niobium mine in production in Europe.
On 14 July, the company submitted a conditional binding offer to acquire all mining rights, titles and related interests and assets of Strategic Minerals in the Penouta Mine.
As part of the acquisition, Energy Transition will pay up to €3.6 million ($6.43 million). A €500,000 deposit has been lodged as part of the bid process.
The deal is subject to completing various conditions including executing a sale and purchase deed, receiving necessary approvals, and foreign direct investor, secured creditor, and final judicial approvals.
Energy Transition, which has a market capitalisation of $79.12 million, says the offer will be funded from the company’s cash reserves.
The company says it is focused on progressing this opportunity in line with its strategy of building a diversified portfolio of critical minerals projects, complementing its core assets, the Kvanefjeld Rare Earths Project in Greenland.
Tin is a white metal that is non-toxic and highly malleable. According to Geoscience Australia, the largest use of tin is in solder. Due to it being relatively soft, it is used in a range of alloys including bronze.
Tantalum is widely used and is favourable for miniaturised electronic applications such as mobile phones, hand held devices, and solid state drives. Tantalum is also used in resistors and semiconductors.
Niobium is used in alloys including stainless steel. Alloys containing niobium are used in jet engines, rockets, beams and girders for buildings, alongside oil rigs and pipelines.
Write to Aaliyah Rogan at Mining.com.au
Images: Strategic Minerals Spain
