Directors of JSE-listed Europa Metals take pay cut as the company ramps up Toral efforts

The JSE-listed company said yesterday that the cost reduction programme started on January 1. Photo: African News Agency (ANA) Archives

The JSE-listed company said yesterday that the cost reduction programme started on January 1. Photo: African News Agency (ANA) Archives

Published Jan 27, 2022

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IN AN effort to reduce costs and maximise existing cash reserved for its Spanish Toral project, Europa Metals has announced that it has cut the salaries of three directors.

The JSE-listed company said yesterday that the cost reduction programme started on January 1.

“The company’s existing directors Myles Campion, Laurence Read and Evan Kirby have agreed to the deferral/accrual of 50 percent of their director remuneration (comprising consulting fees and/or salaries) in respect of the 2022 calendar year, with such accrued remuneration to then be settled via the issue of new ordinary shares," Europa Metals said.

Europa Metals chief executive Laurence Read said: “Our cost-cutting programme aims to ensure that our resources are directed as far as possible on project-related expenditure and existing operations, as well as the evaluation of potential new complementary projects and opportunities.”

Further cost savings would be be rolled out over the coming months.

Europa Metals said while the Toral project was at an advanced stage, the company was initiating a further series of work programmes, which include additional geotechnical and resource drilling, in order to continue to de-risk it.

A further limited geotechnical and resource drilling programme was also planned to start during the current quarter.

“Geotechnical drilling and studies will initially serve to determine ground conditions at several potential plant sites, while ground assessment work has begun at a disused quarry site identified for potential reclamation,” Europa said.

Resource drilling would then seek to incrementally expand the company’s pre-existing 5.9 million tonnes indicated resource estimate, the company said.

“We have a valuable asset in Toral, which the board does not currently believe to be fully recognised and reflected in the company’s share price and by seeking to identify and secure a potential new attractive project(s) to add to our portfolio we will endeavour to add value for shareholders while continuing to drive Toral forward,” Read said.

In November, Europa Minerals received the second tranche of an innovation grant, worth over R2 billion, from the Spanish government.

After receiving the first tranche of almost the same amount, the company and its innovation partners recorded and analysed data generated from a 2021 pre-feasibility study drilling campaign at the company's Toral lead-zinc-silver project in Spain.

By 2.30pm the share price was up nearly 3 percent at R1.04.

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