European Resources Limited has accelerated its rare earths exploration and metallurgical programs in Finland, supported by a fully subscribed $1.6 million rights issue and a $546,750 placement. Key drilling and processing initiatives aim to unlock value amid rising global demand for critical minerals.
- Pivot to direct hydrometallurgical processing at Korsnäs with ANSTO Minerals engaged
- Diamond drilling underway at Korsnäs to support resource estimate update
- Expansion of Jokikangas project footprint with low-impact reconnaissance planned
- Fully subscribed rights issue raised $1.6 million plus $546,750 follow-on placement
- Cash position strengthened to $1.085 million at quarter-end
Strategic Shift in Metallurgical Approach
European Resources Limited (ASX, ERE) has reported significant progress in its December 2025 quarterly activities, notably pivoting its metallurgical strategy at the Korsnäs rare earths project in Finland. After metallurgical screening confirmed the suitability of the existing lanthanide concentrate stockpile for hydrometallurgical extraction, the company decided to forgo further flotation optimisation, which was deemed unlikely to add value. Instead, it has engaged ANSTO Minerals to undertake a Stage 1 pre-leach and acid bake/leach test program aimed at defining optimal extraction conditions and guiding downstream processing flowsheets.
Drilling Campaign and Resource Development
Complementing the metallurgical work, European Resources commenced a diamond drilling program at Korsnäs in early December 2025, reaching 50% completion by the end of the quarter. The drilling is designed to confirm mineralisation continuity, extend known zones, and provide fresh samples to support metallurgical and flowsheet development. These efforts underpin a planned update to the existing JORC Mineral Resource Estimate, a critical step towards advancing the project’s development potential.
Expanding Exploration Footprint
In parallel, the company expanded its Jokikangas project footprint in Finland, targeting high field strength elements and heavy rare earth elements. The exploration strategy involves low-impact reconnaissance methods such as passive seismic surveys and base-of-till drilling, pending permitting and access. Regional geochemical and aeromagnetic data have identified promising structural trends and geochemical anomalies, setting the stage for refined target definition.
Capital Raising and Financial Position
European Resources successfully completed a fully subscribed rights issue raising approximately A$1.6 million, supplemented by a follow-on placement of A$546,750 on the same terms. The capital raised will fund ongoing exploration in Finland and Slovakia, advance metallurgical programs, and support general working capital. The company ended the quarter with a cash balance of A$1.085 million, positioning it to sustain operations and pursue its strategic objectives.
Corporate Rebranding Reflects European Focus
Reflecting its evolving geographic focus, the company formally changed its name to European Resources Limited and updated its ASX ticker to ERE. This rebranding aligns with its acquisition of Finnish projects through Bambra Oy and signals a commitment to growing its presence in Europe’s mining sector, which the board views as an attractive jurisdiction for rare earth and critical mineral development.
Bottom Line?
With drilling underway and metallurgical programs advancing, European Resources is poised for a pivotal resource update that could reshape its market prospects.
Questions in the middle?
- What initial assay results from the Korsnäs drilling program will reveal about resource grade and continuity?
- How will the outcomes of ANSTO’s hydrometallurgical test work influence the preferred extraction pathway and project economics?
- What are the timelines and permitting challenges for exploration activities at Jokikangas and Slovakian projects?