European Green Transition acquires option on copper recycling project in Cyprus
The past-producing Limni copper mine near Polis in western Cyprus produced over 8.1 million tonnes of ore grading 1.11% copper between 1937 and 1978.
The £125,000 option offers EGT full, exclusive access to conduct additional due diligence on the proposed Copper Tailings Recycling Project over a 12-month period.
It’s proposed that a copper recovery circuit be used to extract copper from existing pit waters at Limni.
This has the potential to recover a meaningful but as yet undetermined amount of copper. EGT believes this could represent an opportunity for near-term revenue generation in a capital efficient manner.
In addition, the site and surroundings also offer an excellent long-term location potentially to establish a solar power facility, following the completion of the tailings operation.
Should this proceed, EGT would intend to partner with an existing solar power operator who could fund the facility, with EGT maintaining a long-term revenue stream.
During the due diligence phase, EGT expects to engage with all relevant stakeholders to ensure the project aligns with the Company's ESG standards.
"This option agreement is an example of EGT's strategy in action, broadening our focus and expanding our scope to access green economy projects in Europe,” said EGT’s chief executive Aiden Lavelle.
“The Limni project perfectly fits our aim to pursue what we believe are high quality opportunities where we can potentially generate near term cash flow efficiently, while also prioritising the environment and local stakeholders. We have seen a stronger interest in copper with increased M&A activity, particularly in the London market. In light of shortages and rising prices for the metal, we believe this project is potentially well placed to benefit from Europe's green energy transition and the fundamental role that copper will play in the development of transport, wind and solar power infrastructures.”
He added that the deal also aligns with the EU's recently adopted Critical Raw Materials Act which mandates that at least 15% of the EU's annual consumption of critical materials should come from recycling.
View from Vox
This a timely deal, as the copper price continues to strengthen and corporate activity in the sector begins to heat up. It also ticks all the right boxes for European Green Transition. It’s likely to generate short-term cash flow, and as a recycling project it will leave the environment in a better state than when it started. What’s more, the longer-term potential for solar power highlights that EGT isn’t just about green commodities and recycling, but is likely to have meaningful and lasting presence in the business of green energy generation. Not surprising, then, that the shares are up more than 20% on their listing price earlier in the month.
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