TIRANA (Albania), October 12 (SeeNews) – Canada-based European Electric Metals Inc. said it has entered into an agreement to acquire 100% of the share capital of Albanian company Gerold, which owns the Skroska iron-nickel mine in Elbasan region in Albania.
“Under the terms of the agreement, the European Electric Metals will acquire 100% of the issued and outstanding shares (quotas) of Gerold for total consideration of 5.41 million euro ($6.3 million) over three years, comprising payments totaling 5.2 million euro and share issuances valued at 210,000 euro,” the company said in a statement late on Thursday.
European Electric Metals' geological team believed there was potential for high-grade cobalt in this geological setting and during sampling realized this potential, the company said.
Gerold previously ran a 200 tons per day mine at Skroska, a fully permitted mining operation covered by a 20-year mining licence, which was issued in 2008. Gerold conducted mining operations on Skroska from 2008-2013 using an open stope method. The operation previously focused on nickel production and the mine was put on care and maintenance in 2013 due to low nickel prices.
European Electric Metals has also a 25-year mining licence from Albania’s energy ministry to operate the Rehova copper mine located 115 kilometers southeast of Tirana.
European Electric Metals is a Canadian listed public company with projects in Europe. The European Bank for Reconstruction and Development is the largest shareholder of the company with its ownership of 27.56% of the outstanding shares.
The company says its goal is to become a major source of battery metals such as copper, nickel and cobalt, and the company seeks to do so within safe, stable and logistically attractive European jurisdictions.
The company changed its name to European Electric Metals Inc. from Tirex Resources Ltd in January to reflect its focus on high grade battery and electrification metals within a European setting.
($ = 0.86440 euro)