How Will ETM Unlock Value from Spain’s Penouta Mine Amid Greenland Legal Hurdles?

Strategic Acquisition in Spain

Energy Transition Minerals Ltd (ASX, ETM) has taken a major step forward in its critical minerals portfolio with the successful bid to acquire the Penouta tin-tantalum-niobium mine and processing plant in Galicia, Spain. The acquisition, through its wholly owned subsidiary ETM Spain, was secured for €5.2 million (approximately A$9.2 million), a fraction of the nearly €28 million previously invested in the asset by Strategic Minerals since 2012. This deal positions ETM as the owner of the only advanced tin-tantalum-niobium deposit within the European Union, complete with existing processing infrastructure and established logistics links.

The Penouta Mine’s infrastructure includes a crushing-grinding-gravity separation plant, engineered tailings storage, and access to road and rail networks facilitating transport to the Port of Vigo. These assets significantly reduce the capital expenditure and technical risks typically associated with greenfield developments. Completion of the acquisition is expected in the first quarter of 2026, pending regulatory and insolvency approvals in Spain.

Capital Raising Success

ETM bolstered its financial position during the quarter by raising a total of A$18 million. This comprised a A$10 million strategic placement to OCJ Investment (Australia) Pty Ltd and an oversubscribed Share Purchase Plan (SPP) that raised A$8 million, well above the initial target of A$3 million. The company ended the quarter with a robust cash balance of A$33.9 million, providing ample runway for advancing its projects and corporate activities.

Progress and Challenges at Kvanefjeld

Exploration activities continued at ETM’s flagship Kvanefjeld Rare Earth Element Project in Greenland, with a comprehensive field program completed in September 2025. The program focused on geological mapping and sampling to refine models and identify new targets within the licence area. However, the project remains embroiled in legal and arbitration proceedings with the Greenlandic and Danish governments regarding the granting of an exploitation licence.

In a recent decision, the Arbitration Tribunal ruled to stay the arbitration pending the outcome of court proceedings in Greenland, effectively pausing the process. The tribunal also excluded the Danish government from the arbitration and referred certain claims to the courts. ETM’s Managing Director Daniel Mamadou expressed confidence in a positive eventual outcome and reiterated the project’s strategic importance for Greenland’s economy and the global renewable energy transition.

Exploration and Corporate Developments

Aside from Penouta and Kvanefjeld, ETM is advancing early-stage lithium exploration projects in Canada’s James Bay region and Spain’s Villasrubias area. While no ground activities occurred this quarter at these sites, desktop studies and planning are underway to align with evolving lithium market conditions.

On the governance front, ETM saw board changes with the resignation of director Xiaolei Guo and appointments of Gan Lu and Amy Jiang, representing key strategic investors Shenghe Resources and OCJ respectively. These changes reflect ETM’s growing international partnerships and focus on critical minerals supply chains.