Elementos, a tin exploration and development company, has entered a non-binding term-sheet to potentially acquire up to a 50% interest in Iberian Smelting for €3.2m (A$5.18m).
The deal, which is being carried out via a fully owned Spanish subsidiary of Elementos, could see the company taking a significant stake in the tin smelting and refining facility near Robledallano in Spain's Extremadura Region.
It sets out a two-stage option for Elementos, with a five-year term to exercise the option.
As part of the option agreement, Elementos will invest €2m as a capital injection for working capital and capital improvements, including the installation of an additional vacuum smelter to increase the efficiency and total throughput of the facility.
This move could enhance Elementos' position in the European tin market and provide access to a fully licensed operational facility.
Iberian Smelting is 90% owned by CRM Synergies, with the remaining 10% held by a private individual.
The tin smelter, which was previously utilised for lead shot and battery recycling, was acquired by CRM in June 2021.
The facility is fully permitted, holding all necessary environmental, waste and emissions and operational permits.
It is currently licensed to smelt tin, lead and other base metals, with an approved capacity of up to 20,000 tonnes per year.
Elementos managing director Joe David said: “We are very pleased to announce this agreement with CRM Synergies and the pathway forward to a 50% ownership stake in Iberian Smelting SL and the Robledallano Smelting and Refining Facility.
“CRM is an established global tin company recognised by major manufacturers in the auto, electronic and aerospace industries as a responsible producer of tin ingots and soldering products. They have an established sales network within Europe, North America as well as servicing global customers – which Elementos will have access to.
“The completion of this transaction will be significant and will drive several key economic, strategic and political benefits to the company.”
