European Green Transition plc has agreed an exclusive six-month option to sell its Pajala copper project in northern Sweden.
MONETISING
Potential purchaser, Recovery Metals Cyprus Ltd, will fund all due diligence on the project’s Liviövaara nr 101 and Lehtosölkä nr 101 exploration licences.
European said that Pajala was a potential iron oxide copper gold (IOCG) target, with historical drilling “confirming copper mineralisation across multiple intersections”.
Between 2000 and 2001, Anglo American explored the site, diamond drilling nine holes for 1,768.9 metres.
European co-founder and non-executive chairman Cathal Friel added that the option agreement was a significant step in the company’s strategy to generate value from its portfolio.
“The agreement provides RMC with sufficient time to complete its due diligence on the project, supported by their team who have prior operational experience in the region.
“Copper prices are approaching record highs, underpinned by limited supply and strong market fundamentals.
“This potential transaction reinforces our approach to capital allocation as we continue to focus our resources on monetising our existing mining projects and acquiring and developing distressed, revenue-generating businesses across a diverse range of sectors.”