Penouta Acquisition Hinges on Regulatory Approvals, Introducing Execution Risks

Strategic Acquisition Approved

Energy Transition Minerals Limited (ASX – ETM) has received judicial approval to acquire the Penouta tin-tantalum-niobium mine located in Galicia, Spain. The acquisition, conducted through its wholly owned subsidiary ETM Spain, follows a court-led auction process after the previous owner, Strategic Minerals Spain, entered administration in 2024. The court’s endorsement on 17 October 2025 clears the way for ETM to take ownership of this unique European asset.

A Rare European Critical Minerals Asset

Penouta stands out as the only developed tin-tantalum-niobium project within the European Union, aligning closely with the EU’s strategic objective to secure critical mineral supply chains. These metals are essential for emerging technologies, including electric vehicles and renewable energy infrastructure. ETM’s acquisition positions the company as a key player in the European critical minerals landscape, where comparable listed assets are scarce.

Attractive Valuation and Portfolio Diversification

The purchase price of €5.2 million (approximately A$9.2 million) represents a compelling value relative to the capital previously invested in Penouta and its potential valuation upon restart. This deal diversifies ETM’s portfolio beyond its Greenland-based Kvanefjeld rare earths project, reducing reliance on a single asset and mitigating litigation and permitting risks. The acquisition also adds operational infrastructure, including mining rights, processing facilities, and a skilled local workforce.

Pathway to Early Cashflow

ETM plans to leverage the existing Section B Concession, which permits tailings reprocessing, to generate early cashflow with relatively low operational risk. While the Section C Concession, covering new mining activities, will require regulatory re-compliance, it offers upside potential for expanded production including niobium. The company’s strategy includes engaging with local authorities to secure necessary permits and to integrate with the Galician community.

Looking Ahead

Completion of the acquisition is expected by December 2025, subject to final regulatory approvals including foreign direct investment consent and mortgagee agreement. ETM will fund the transaction from existing cash reserves, underscoring its financial strength. Meanwhile, the company remains committed to advancing its Greenland rare earths project, maintaining a balanced approach to its global critical minerals ambitions.