Elementos, a tin exploration and development company, has recently made a promising move by securing an option deal to potentially acquire up to a 50% interest in Iberian Smelting. This strategic agreement, valued at €3.2m (A$5.18m), could pave the way for Elementos to establish a strong presence in the European tin market.
The deal, facilitated through Elementos’ fully owned Spanish subsidiary, outlines a two-stage option with a five-year term for Elementos to exercise the option. As part of this arrangement, Elementos plans to inject €2m into the facility for working capital and capital improvements, such as the installation of an additional vacuum smelter to enhance efficiency and increase throughput.
Iberian Smelting, located near Robledallano in Spain’s Extremadura Region, currently holds licenses to smelt tin, lead, and other base metals. Acquired by CRM Synergies in June 2021, the facility boasts all necessary environmental, waste, and emissions permits, with an approved capacity of up to 20,000 tonnes per year.
Elementos’ managing director, Joe David, expressed enthusiasm about the potential acquisition, highlighting the benefits of partnering with CRM Synergies. Not only does CRM have a strong reputation as a responsible tin producer serving major industries like automotive, electronics, and aerospace, but they also possess an extensive sales network spanning Europe, North America, and global markets.
David emphasized that completing this transaction would not only be significant for Elementos but also unlock various economic, strategic, and political advantages for the company. By securing a stake in Iberian Smelting, Elementos could strengthen its position in the tin market and gain access to a fully operational and licensed facility with established connections to key industries.
This partnership aligns with Elementos’ vision to expand its reach and capabilities in the European market, leveraging the expertise and resources of CRM Synergies to drive growth and innovation. As the global demand for tin continues to rise, establishing a foothold in a well-equipped smelting and refining facility could position Elementos for long-term success and sustainability in the industry.
In a competitive landscape where knowing your competitors is crucial, Elementos’ strategic move to secure an option deal for a stake in Iberian Smelting demonstrates a proactive approach to growth and diversification. With a clear roadmap for investment and expansion, Elementos is poised to make a significant impact in the European tin market and capitalize on emerging opportunities in the industry.