Eurobattery Minerals AB, listed on the Nordic Growth Market (BAT) and Börse Stuttgart (EBM), has entered into a non-binding letter of intent (LOI) to acquire a majority stake in Tungsten San Juan SL (TSJ), a Spanish company. The key points of the investment are as follows:
Eurobattery Minerals intends to invest EUR 2.5 million in TSJ, acquiring a 51% ownership stake on a fully diluted basis.
The investment will primarily fund the design and construction of a processing plant and provide working capital for production commencement.
TSJ aims to begin delivering tungsten material to Europe by 2025, with an off-take agreement in place with Wolfram Bergbau und Hütten AG, a tungsten producer within the Sandvik Group.
Tungsten is a critical raw material utilized in various industries such as electronics, aerospace, and defense.
The investment will be made in two tranches of EUR 1.5 million and EUR 1.0 million, respectively, with Eurobattery Minerals gaining full ownership after the first tranche payment.
Both tranches are expected to be completed in 2024, subject to satisfactory due diligence and financing.
Eurobattery Minerals CEO Roberto García Martínez emphasizes the strategic significance of the investment, noting tungsten’s criticality and its role in enhancing steel for defense applications.
TSJ is focused on developing the San Juan wolfram deposit in Ourense, Galicia, Spain, with proven reserves and licenses in place for production commencement.
The initial production is planned for 2025, with potential extensions and additional reserves expected to increase production capacity significantly.
The investment aims to facilitate positive cash flows within 12 months of the first tranche completion, with dividends and reinvestment to maximize shareholder value.
Eurobattery Minerals’ mission is to promote responsible mining in Europe to support the continent’s self-sufficiency in battery minerals.
The LOI grants Eurobattery Minerals exclusive rights for ninety days to finalize the majority stake investment in TSJ.
Eurobattery Minerals is focused on nickel-cobalt-copper projects in Europe to supply critical raw materials for battery production and contribute to a cleaner energy future.
