20 May, 2020
Eurobattery Minerals AB hereby publishes its Interim Report January – March 2020
First quarter 2020 (same period previous year)
- Net sales amounted to SEK 0 (SEK 0).
- Operating income after depreciation/amortisation and financial items totalled KSEK -2,248 (KSEK -2,104)
- Earnings per share after depreciation/amortisation and financial items amounted to SEK -0.23 (SEK -0.08).
- Cash flow from operating activities was KSEK -1,564 (KSEK -1,564).
- The Company received the final assay results during the reporting period following completion of a 4 hole, 998m drill programme in the fourth quarter of 2019 at the Castriz prospect, which is part of the Corcel Ni-Co-Cu Project in NW Spain.
- Exploration Activities have confirmed there to be large areas of ultramafic rock with elevated nickel contents. The anomalous area extends for over 700m in strike and over 700m in width. Assay highlights from the four drill holes included:
- 69m @ 0 30% Ni, 0.04% Cu & 0.01% Co from 78m (19DD0001)
- 24.5m @ 0.30%0 Ni, 0.12% Cu & 0.01% Co from 14.5m (19DD0002)
- 75m @ 0.24% Ni, 0.04% Cu & 0.01% Co from 131.5m (19DD0003)
- including 9m @ 0.44% Ni, 0.14% Cu & 0.02% Co from 191.5m
- 28.8m @ 0.20% Ni, 0.14% Cu & 0.01% Co from 6.8m (19DD0004)
- Mineral identification and speciation studies have commenced on drill core from Castriz to determine the potential for extraction of nickel using sustainable and conventional methods. Final results of the mineral studies are anticipated in early Q2 2020.
- Collaboration with Uppsala University and the AGH University of Science and Technology in Krakow on the vanadium potential of rock sequences at the Fetsjön project in Västerbotten determined the host mineral to be a variety of rutile. Planning is now underway to determine the potential for sustainable extraction of the vanadium.
- The Company has been pre-selected to take part in the EU project S3-MINE. S3-MINE’s main objective is the development and implementation of a mining pilot at 10 different facilities in 6 different EU countries. The aim is to demonstrate the feasibility of innovative digital technologies throughout the mining life cycle as a powerful tool to increase efficiency, selectivity and profitability of the mining operations, while minimising environmental impacts and associated health & safety issues. As a pre-selected member in the S3-MINE project, the Company can apply for monetary funding from a fund assigned to this project.
- The Company is safely managing its activities and financial position during the current challenging conditions associated with COVID-19. Progress on the Company’s projects has not been impacted as activities consist primarily of desktop studies. Third-party laboratory operators are able to process analytical test work with minimal delays.
- The Company announced the preliminary results from nickel sulphide mineral tests on mineralised samples from recent drilling at Castriz prospect in Galicia, northern Spain. Analytical methods that distinguish between nickel in sulphide minerals and nickel in non-sulphide minerals determined that on average 87% of the whole rock nickel assay previously reported is sourced from nickel sulphide minerals.
- The Company has signed an investment and shareholders agreement including an option for a staged acquisition of 100 per cent of the shares in Vulcan Hautalampi Oy, 100 per cent owner of the Hautalampi Nickel-Cobalt-Copper Project, in eastern Finland.
- The Board of Directors of BAT has proposed to an Extraordinary General Meeting on 27 May 2020 to carry out a rights issue of at most 1,938,938 units (the “Rights issue”). One (1) unit consists of two (2) shares and one (1) warrant (the “Unit”). The subscription price of a Unit is SEK 24.00, whereby BAT upon full subscription in the Rights issue would obtain approximately SEK 46.5 million before issue costs. Every ﬁve (5) existing shares entitle to one (1) unit right and one (1) unit right entitles to subscribe for one (1) unit. The subscription period runs during 29 June – 14 July 2020. The Rights issue is secured to SEK 23.3 million by subscription commitments of SEK 6.0 million, e.g. from the Company’s CEO, and the remaining part by underwriting commitments.
- As a result of the COVID-19 pandemic the Company adapted its working methods to continually run the different projects, now remotely. The Company completed all current field activities ahead of the pandemic and have all employees and consultants in good health and at their homes.
- We continue to evaluate the drilling results and the implications for mineral deposits at Castriz and the wider Corcel Project, including the Monte Mayor and Monte Castello prospects.
- Mineral studies conducted by Uppsala University and the AGH University of Science & Technology in Krakow on the vanadium potential at BATs project Fetsjön in Västerbotten in Sweden have advanced our understanding of source of the vanadium. Next step is to assess the technical and economic implications of this.
- During the quarter we become a partner in the S3-MINE pilot programme, a European union project in support of sustainable mining. Specifically, BAT’s Fetsjön project in Västerbotten, Sweden, has qualified for support.
- We are focused on advancing our projects and also expanding our footprint in the exploration and mining of raw materials, and as such be the foundation for the European EV battery industry.
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