ETM Secures Preferred Bidder Status for €3.6M Penouta Project Amid Greenland Arbitration

Legal Progress at Kvanefjeld

Energy Transition Minerals Ltd (ETM) reported meaningful progress in the arbitration proceedings concerning its flagship Kvanefjeld Rare Earths Project in Greenland. An oral hearing was conducted in Copenhagen in late June 2025 to determine the arbitral tribunal's jurisdiction over the exploitation licence dispute and associated damages claims. A decision on jurisdiction is anticipated by September 2025, which will dictate whether the arbitration proceeds on its merits or is paused pending parallel litigation outcomes in Greenland and Denmark.

Meanwhile, the subsidiary Greenland Minerals A/S has secured a DKK25 million (approximately A$5.88 million) guarantee for potential adverse costs, underscoring the high stakes involved in this protracted legal battle. The company’s technical team also advanced operational readiness and community engagement efforts during the quarter, preparing for upcoming fieldwork.

Strategic Move in Spain – Penouta Acquisition

In a notable development post-quarter, ETM Spain was recommended as the preferred bidder for the Penouta Tin-Tantalum-Niobium Mine in Galicia, north-western Spain. This acquisition, valued at up to €3.6 million (around A$6.4 million), aligns with ETM’s strategy to diversify its portfolio of critical minerals essential for energy transition technologies. The final court decision following a live auction is expected by October 2025, subject to regulatory and judicial approvals.

The Penouta project offers ETM exposure to tin, tantalum, and niobium, minerals increasingly critical for electronics, batteries, and other clean energy applications. This move signals ETM’s intent to broaden its footprint beyond rare earths and lithium, potentially enhancing its market positioning.

Lithium Exploration and Project Updates

ETM continued its measured approach to lithium exploration across its Canadian and Spanish assets. The Solo and Good Setting lithium projects in Quebec’s James Bay region saw no substantive on-ground activity during the quarter, though several promising sites were identified during prior reconnaissance. The company is evaluating future exploration plans in light of current lithium market conditions.

Similarly, the Villasrubias Lithium Project in Salamanca, Spain, had its exploration licence renewed for three more years, reflecting satisfactory progress against minimum work commitments. ETM is negotiating an earn-in extension to conserve funds while maintaining project momentum.

Corporate and Financial Position

Corporate governance saw a key change with the appointment of Jessamyn Lyons as Company Secretary, joining Ryan Sebbes in a dual role. The company also issued 1.2 million shares following performance rights conversion, while over 32 million performance rights expired unexercised.

Financially, ETM remains well-capitalised with cash and equivalents totaling approximately A$18.5 million at quarter-end. Operating and investing cash outflows reflect ongoing exploration and arbitration-related expenditures, but the company’s liquidity position supports continued development activities.