Metals X Invests $5 Million in Elementos to Advance Spanish and Tasmanian Tin Projects
In a strategic move to bolster global tin supply and strengthen its position in the critical minerals sector, Australian tin producer Metals X (ASX: MLX) has invested A$5 million (approximately US$3.2 million) in fellow Australian company Elementos Limited (ASX: ELT). This investment, executed through a private placement, grants Metals X a 19.98% equity stake in Elementos, marking a significant collaboration aimed at advancing key tin projects in Spain and Tasmania.
Strategic Investment Details
Under the terms of the agreement, Metals X will acquire approximately 58.96 million fully paid ordinary shares in Elementos at an issue price of A$0.0848 per share. The majority of these shares, about 58.28 million, will be issued under Elementos’ existing placement capacity, with the remaining 684,566 shares subject to shareholder approval at a forthcoming general meeting. The placement is expected to settle on or around 23 May 2025.
Advancing the Oropesa Tin Project in Spain
The funds raised will primarily support the advancement of Elementos’ flagship Oropesa Tin Project, located in Córdoba Province, Andalucía, Spain. A recent Definitive Feasibility Study (DFS) for the Oropesa project confirmed its robust technical, environmental, and economic viability. The study outlines a 1.4 million tonnes per annum open-cut mining operation, producing approximately 3,405 tonnes of tin per year over a projected 12-year mine life. The project boasts a pre-tax Net Present Value (NPV) of $270 million and an Internal Rate of Return (IRR) of 26%, based on an LME tin price of US$30,000 per tonne.
Supporting the Cleveland Tin Project in Tasmania
In addition to Oropesa, the investment will aid in the continued redevelopment of Elementos’ Cleveland Tin Project in Tasmania, Australia. This project is rapidly evolving into a significant critical minerals venture, with ongoing exploration and development activities aimed at expanding its resource base and production potential.
Strengthening Strategic Collaboration
As part of the investment agreement, Elementos has invited Metals X to nominate two directors to its board, fostering a closer strategic partnership between the companies. Elementos Chairman Andy Greig expressed enthusiasm about the collaboration, stating that working with Metals X will support the development and delivery of Elementos’ key projects, including the Oropesa Tin Project, which is positioned to become the only mine-to-metal tin supplier within the EU, and the Cleveland Tin Project in Tasmania, which is rapidly expanding into a larger critical minerals operation.
Metals X Executive Director Brett Smith highlighted the mutual benefits of the partnership, noting that the investment provides Metals X with further opportunity to participate in a global pipeline of developing tin projects and contribute operational expertise to accelerate their growth.
Market Implications
This strategic investment comes amid a significant rise in tin prices, which have surged over 82% on the London Metal Exchange (LME) since November 2022, reaching US$32,816 per tonne. The collaboration between Metals X and Elementos is poised to enhance the global tin supply chain, particularly within the European Union, and underscores the growing importance of securing critical mineral resources to support the energy transition and technological advancements.