ETM’s €3.6 Million Bid Leads for Penouta Tin-Tantalum-Niobium Mine

ETM Spain Recommended as Preferred Bidder

Energy Transition Minerals Ltd (ASX, ETM) has taken a decisive step towards expanding its portfolio of critical minerals projects with its wholly owned subsidiary, ETM Spain, being formally recommended as the preferred bidder for the Penouta mine in Galicia, Spain. This recommendation comes from the court-appointed administrator overseeing the insolvency proceedings of Strategic Minerals Spain, the current owner of the Penouta Tin-Tantalum-Niobium mine.

Details of the Conditional Offer

The bid, valued at up to €3.6 million (approximately A$6.4 million), includes a fixed consideration of €2.5 million payable at completion, with additional contingent payments tied to resolving a second-ranking mortgage and liabilities for retained employees. A refundable deposit of €500,000 has already been lodged, underscoring ETM Spain’s commitment to the acquisition process.

However, the offer remains conditional on several critical approvals, including the execution of a sale and purchase deed, transfer of mining rights, foreign direct investment clearance, and final court and creditor consents. These layers of approval reflect the complex regulatory and legal environment surrounding mining assets in Spain, especially those under insolvency.

Auction and Next Steps

A live auction is scheduled for 29 July 2025, where competing bidders may submit improved offers. ETM Spain’s status as preferred bidder could be adjusted depending on the auction outcome. The final court declaration of the acquiror is expected by October 2025, with completion anticipated before the end of the year, assuming all conditions are met.

In addition to the purchase price, ETM Spain will assume ongoing care and maintenance costs estimated at €100,000 per month, up to a maximum of €1.2 million, covering the period from permit transfer authorization to foreign investment approval. This financial commitment highlights the operational responsibilities ETM Spain will undertake to maintain the mine’s viability during the transition.

Strategic Implications for ETM

The Penouta acquisition aligns with ETM’s broader strategy to build a diversified portfolio of critical minerals assets, complementing its flagship Kvanefjeld Rare Earths Project in Greenland. The addition of Penouta, with its tin, tantalum, and niobium resources, could enhance ETM’s exposure to key minerals essential for energy transition technologies.

While the recommendation is a positive development, the acquisition is not yet guaranteed. The company has been transparent about the conditional nature of the offer and the possibility of competing bids. Investors will be watching closely as the auction and regulatory processes unfold.