Energy Transition Minerals Ltd (ETM) has won the bid for the Penouta mine in Spain, the EU’s sole tin-tantalum-niobium producer, raising A$10 million to support the acquisition and development amid regulatory hurdles.
- Successful bid for Penouta mine and processing plant in Galicia, Spain
- Acquisition price €5.2 million, well below historic €28 million investment
- A$10 million strategic placement with OCJ Investment, gaining board representation
- Section C mining concession suspended, with near-term tailings processing under Section B
- Share Purchase Plan to raise up to A$3 million for existing shareholders
Strategic Acquisition in Europe’s Critical Minerals Landscape
Energy Transition Minerals Ltd (ASX, ETM) has emerged as the successful bidder for the Penouta tin-tantalum-niobium mine and processing facility located in Galicia, Spain. This acquisition marks a significant milestone for ETM, securing the only developed mine of its kind within the European Union, a region increasingly focused on critical mineral supply chain resilience.
The Penouta mine, which last operated in October 2024, was acquired through a court-enforced auction following the insolvency of Strategic Minerals Spain. ETM’s winning bid of €5.2 million (approximately A$9.2 million) represents a deep value entry, notably below the nearly €28 million historic capital invested in the project since 2012. This discount reflects the current challenges but also the latent potential of the asset.
Capital Raising and Strategic Partnership
To support the acquisition and future development, ETM has secured a A$10 million strategic placement with existing shareholder OCJ Investment (Australia) Pty Ltd. OCJ will hold about 15.5% of ETM post-settlement and gain the right to nominate a board member, signaling a strong vote of confidence in ETM’s strategy and the Penouta asset’s prospects. Additionally, ETM plans to offer a Share Purchase Plan (SPP) to existing eligible shareholders to raise up to A$3 million, further strengthening the company’s balance sheet.
Permitting Challenges and Operational Outlook
While the acquisition secures all mining rights and infrastructure, ETM faces regulatory hurdles, particularly the suspension of the Section C Concession for primary ore extraction due to an environmental legal appeal by the NGO Ecoloxistas en Acción. This suspension has halted full-scale mining since October 2023. However, the Section B Concession, which permits exploitation of historical tailings and waste, remains valid and offers a pathway for near-term, lower-impact processing operations that could generate cash flow as ETM pursues reinstatement or reapplication of the Section C Concession.
ETM’s management highlights the strategic importance of Penouta’s established infrastructure, supportive local community, and alignment with Spain’s and the EU’s critical minerals strategies. The company is confident that its in-country team’s expertise in sustainable development will facilitate a responsible and efficient restart of operations.
Resource Base and Technical Validation
The mineral resource estimate for Penouta is based on a 2021 NI 43-101 technical report prepared by SRK Consulting (UK) Ltd, encompassing measured, indicated, and inferred categories. The resource includes significant quantities of tin, tantalum, and niobium, all critical to industrial and technological applications, especially tantalum’s role in semiconductor manufacturing. ETM plans to undertake further drilling and metallurgical testing to validate and potentially upgrade the resource under JORC standards, enhancing confidence for mine planning and development.
Enhancing Jurisdictional and Asset Diversity
This acquisition complements ETM’s existing focus on Greenland, diversifying its asset base geographically and strategically. By adding a near-term European asset, ETM positions itself to better navigate geopolitical risks and capitalize on the EU’s evolving regulatory framework, including fast-track environmental authorizations and concessional financing under the EU Critical Raw Materials Act and Spain’s Strategic Minerals Plan.
With a strengthened balance sheet and a clear development pathway, ETM is poised to advance Penouta towards a potential restart, balancing near-term tailings processing with longer-term ambitions for full-scale mining.
Bottom Line?
ETM’s Penouta acquisition is a strategic foothold in Europe’s critical minerals supply chain, but regulatory and legal challenges will test the company’s execution in the coming months.
Questions in the middle?
- Will ETM secure judicial approval and overcome appeals to reinstate the Section C Concession?
- How quickly can ETM ramp up tailings processing under the Section B Concession to generate cash flow?
- What are the timelines and capital requirements for validating and upgrading the mineral resource under JORC standards?