ETM Reports $41.7M Cash, Penouta Resource Update, Greenland Licence Denial

Penouta Acquisition Finalised and Resource Updated

Energy Transition Minerals Ltd (ASX:ETM) has completed the acquisition of the Penouta tin-tantalum-niobium mine and processing facility in Galicia, Spain, marking a significant step in securing a European domestic supply of critical minerals. The Penouta Project, the only recent source of tin and tantalum within the European Union, was acquired from the insolvency proceedings of Strategic Minerals Spain. The transfer of existing mining licences was approved by the Xunta de Galicia at the end of the June quarter, enabling ETM to move forward with mining concession applications and project development.

ETM released an updated Mineral Resource Estimate for Penouta on 4 May 2026, prepared under the JORC Code 2012, replacing the previous NI 43-101 estimate. The total resource stands at 108 million tonnes with contained tin of 47,200 tonnes and tantalum pentoxide of 8,600 tonnes, constrained within an optimised open pit shell limited by environmental boundaries. The resource update underpins ETM's plans to restart operations and supports ongoing feasibility studies.

Advancing Permitting and Offtake Discussions

A recent two-week site visit with technical and environmental partners has advanced ETM’s Section C mining concession application, with environmental impact, water, noise, dust, and rehabilitation studies underway. The company targets submission of the full application and delivery of a pre-feasibility study by the end of 2026. ETM also signed a non-binding Memorandum of Understanding with Traxys Europe S.A. for up to 100% of Penouta’s tin, tantalum, and niobium concentrates over a potential six-year period, positioning the project for market engagement pending binding agreements and approvals.

Kvanefjeld Exploration Licence Extension Refused

In Greenland, ETM’s wholly owned subsidiary Greenland Minerals A/S received a formal refusal from the Greenland Ministry of Business and Mineral Resources to extend the Kvanefjeld Exploration Licence (EL 2010/02), which expired on 31 December 2025. The government cited legislative constraints preventing the grant of an exploitation licence as the basis for denial, despite recent exploration results identifying ten new rare earth element (REE) mineralised zones with uranium concentrations below the 100 ppm threshold set by Greenland’s Uranium Act.

The decision was made after a truncated consultation process denying ETM adequate time to respond and contradicts the authorities’ prior approach, including a licence extension granted in 2023 after the Uranium Act’s enactment. ETM is reviewing the decision with legal advisers and continues to pursue ongoing legal proceedings related to the exploitation licence. Greenlandic authorities have indicated the exploration licence area will not be reallocated while proceedings remain unresolved.

New Rare Earth Discoveries at Kvanefjeld

The 2025 field program at Kvanefjeld delineated an 1.8-kilometre-long REE mineralised trend with low uranium content, including high grades of heavy rare earth oxides such as dysprosium and terbium. The discovery of high-grade fenite and trachyte-hosted REE mineralisation with uranium below regulatory thresholds provides promising targets despite the licence setback. Geological studies suggest hydrothermal processes that concentrate REEs while mobilising uranium could explain the rare earth enrichment with low uranium signatures.

Corporate Developments and Financial Position

ETM appointed Alexander B. Gray, a former senior US national security official, to its Strategic Advisory Board, enhancing its geopolitical engagement amid ongoing Greenland legal challenges. The company is also exploring a potential listing on the Nasdaq Stock Exchange to broaden its capital base.

At quarter-end, ETM held A$41.67 million in cash and equivalents, down from A$49.8 million in March 2026, with operating and investing cash outflows of approximately A$3.1 million and A$1.7 million respectively. No new capital raising was reported during the quarter. Other projects in Canada and Spain saw minimal activity, with exploration licences maintained in good standing.