European Electric Metals acquires 100% of Albanian iron-nickel mine

A European metals company, with a focus on metals essential to the elective evolution, has announced its intention to acquire a cobalt-rich nickel iron ore mine in Albania.

European Electric Metals (EVX) announced in a statement this week that it has entered into an agreement to acquire 100% of the Skroska Iron-Nickel mine in Albania.

The company will acquire 100% of the issued and outstanding shares of Gerold, previous owners of the mine, for a total consideration of €5.41 million over three years, comprising payments totalling €5.2 million and share issuances valued at €210,000.

The mine was a 200 tons per day operation focusing purely on nickel production. As a result of low nickel prices, the company placed the mine under care and maintenance but through this acquisition EVX believes that there is real potential for a “high-grade” cobalt operation.

The Skroska deposit had a historic resource of 22.4 million tons and Gerald mined around 100,000 tons at an operating rate of 200 tons per day. Sampling tests condfucted by EVX completed in early 2018 revealed that the mine openings (haulage, development and production areas) were observed to be accessible and free of major blockages, electrical power supply to the underground areas was available while major mine equipment both inside the underground works and on the surface were observed to be in good condition and are reported to be operational.

EVX has plans to evaluate the expansion of the historic mining rate before commencing production operations at the site.

The goal of EVX is to become a major source of battery metals such as copper, nickel and cobalt, and the Company seeks to do so within safe, stable and logistically attractive European jurisdictions.