Elementos secures $5m investment from Metals X to advance Oropesa and Cleveland tin projects

Elementos (ASX: ELT) has secured a $5 million investment from fellow tin producer Metals X (ASX: MLX) by way of a strategic private placement that will see Metals X receive 58.9 million Elementos shares priced at $0.0848 each, equating to a total 19.98% equity stake.

The proceeds will advance Elementos’ flagship Oropesa tin project in Spain towards a final investment decision and assist with the continued redevelopment of its Cleveland tin project in Tasmania.

Metals X is Australia’s largest producer of tin, with multiple investments in diversified Australian metals assets, including a 50% stake in the Renison tin operation in Tasmania.

Critical milestones

Elementos chair Andy Greig welcomed Metals X as a strategic shareholder.

“This investment is a testament to the critical milestones that we have delivered over the last few months and the exceptional asset portfolio we have built,” he said.

“Working with Metals X will aid the development and delivery of Oropesa […], as well as the Cleveland development, which is rapidly growing into a larger critical minerals project.”

He said the company looked forward to benefiting from the experience of Australia’s only significant tin miner and delivering mutual benefits once the projects are in production.

Global pipeline

Metals X executive director Brett Smith believes the Elementos investment will be a valuable addition to the company’s portfolio.

“This investment provides Metals X with a further opportunity to participate in a global pipeline of developing tin projects which can benefit from our operational intellectual property,” he said.

“We look forward to working with the Elementos management team and board of directors to ensure the best future for their projects.”

Oropesa viability

A recent definitive feasibility study for the $260m Oropesa project confirmed its robust technical, environmental and economic viability as the only mine-to-metal, vertically integrated tin project in development within the European Union.

The study defined a maiden ore reserve estimate of 15.9 million tonnes grading 0.36% tin, based upon an earlier mineral resource estimate of 19.6Mt at 0.39% tin.

Oropesa’s development will feature a 1.4Mtpa open-cut mine producing an average 3,405t of contained tin per year (as tin ingot) for the European market over an operating base-case mine life of 12 years.

Cleveland drilling

Elementos commenced a diamond drilling campaign at the Cleveland project in March targeting high-grade copper, gold, silver and tin near the historic tin mine.

A current geological interpretation has highlighted the potential for a shallow, high-grade stratiform volcanogenic massive sulphide (VMS) style of mineralisation, which is spatially close to—but of a different genesis than—the main Cleveland mineralised body.

While precious metals are not a core focus for Elementos, the company said it “could not ignore” Cleveland’s potential significance and would use the campaign to test grades, thickness and lateral and vertical orientation of the VMS target.