Australian tin explorer and developer, Elementos Ltd. (ASX:ELT) has announced plans to acquire the Oropesa tin project in Spain, following the signing of a heads of agreement with current owner, Eurotin.
The Oropesa tin deposit is located in north-west Andalucia, 180km northeast of Seville in southern Spain. Oropesa is a hard-rock tin deposit amenable to open-pit extraction methods, with the potential for further development as an underground mining operation. A Feasibility study for the project is due to be completed in Q4 2018 with environmental studies complete and a mining license application already lodged. Annual production potential is 3,000 tonnes of tin-in-concentrate.
The company has also announced plans to undertake a Capital raising by September 2018. Binding commitments have been received to raise A$1.2 million (~US$ 880,000) at $0.006 a share. The funds will be used to support the Oropesa transaction, advance technical studies at the Cleveland tin project in Tasmania, complete the recent Joint Venture Agreement for the Temengor tin project in Malaysia and for general working capital purposes.
Our view: This recent development widens Elementos’ tin portfolio to three geographically diverse tin projects. Oropesa is an advanced staged tin exploration project with significant exploration drilling and technical studies already complete, although the geology suggests strong potential for multiple satellite deposits in the surrounding area. The challenge for Elementos will be to finalise the feasibility study and acquire a mining license before seeking funding for the mines construction.