The exclusive option agreement offers EGT the opportunity to start due diligence on the project linked to the Limni copper mine.
The site, located in Western Cyprus, was mined between 1937 and 1978. The open pit mine was backfilled with tailings between 2010 and 2012 as part of an EU funded restoration project.
Copper tailings are a finely ground waste rock remaining after ore has been processed to remove the copper. Rainfall at the mine has resulted in water runoff which contains metals that are potentially recoverable.
The mine’s directors are now considering a copper recovery circuit to extract any copper remaining from existing pit waters at the pit, which could generate short-term revenue.
The volume of copper which could be extracted is unknown.
The company said the option to acquire the project is in line with its plans to develop a portfolio of green economy assets in Europe.
The site also offers an opportunity to establish a solar power facility following the completion of the copper tailings recycling.
EGT plans to confirm the commercial potential of this project through analysis of the water treatment and solar development plans, as well as a review of the copper tailings opportunity.
It has also paid mine owner BW79 Holdings £125,000 as consideration for entering into the project.
“We have seen a stronger interest in copper with increased M&A activity, particularly in the London market. In light of shortages and rising prices for the metal, we believe this project is potentially well placed to benefit from Europe’s green energy transition and the fundamental role that copper will play in the development of transport wind and solar power infrastructures,” chief executive Aiden Lavelle said.
“It also aligns with the EU’s recently adopted Critical Raw Materials Act which mandates that at least 15pc of the EU’s annual consumption of critical materials should come from recycling.”
EGT anticipates that the project could generate modest initial cash flows from this project within the first year if it chooses to proceed.
EGT made its stock market debut on London’s Alternative Investment Market last month, raising £6.4m (€7.5m) before expenses from institutional investors and family offices.
It has offered an additional £500,000 in shares to retail investors.
This is the fifth flotation on the AIM undertaken by Cathal Friel, managing director of Raglan Capital. Mr Friel, a former stock broker, is director and co-founder of EGT and is becoming well-known for raising equity via public markets for relatively early-stage businesses.
Oil executive Michael Nolan – who made a fortune when he sold stock market-listed exploration company Cove Energy to Shell in 2012 – is also behind the plans for EGT.
