This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

29 April 2024

European Green Transition plc

("European Green Transition", "EGT" or "the Company")

Option Agreement to Acquire Copper Tailings Recycling Project in Cyprus

European Green Transition (AIM: EGT), a company developing green economy assets in Europe which aims to capitalise on the opportunity created by the green energy transition, is pleased to announce it has entered into an exclusive option agreement (the "Option") to commence due diligence on and potentially acquire a copper tailings recycling project in Cyprus (the "Copper Tailings Recycling Project").

Highlights

Key diligence activities EGT intends to undertake to ascertain commercial potential of the Copper Tailings Recycling Project will include, inter alia, validation of the proposed low-cost water treatment plan, further review of the copper tailings potential and subsequent analysis of the potential for solar development.

During the due diligence phase, EGT expects to engage with all relevant stakeholders to ensure the project aligns with the Company's ESG standards.

The Copper Tailings Recycling Project is owned by BW79 Holdings Limited ("Owner"). The Company has paid a fee of £125,000 to the Owner as consideration for entering into the Option.

Should the Company exercise the Option, any acquisition of the Copper Tailings Recycling Project would be subject to, inter alia, the Company successfully agreeing terms and entering into further documentation. There can be no guarantee that the Option will be exercised.

The Company will make further announcements as appropriate.

Aiden Lavelle, Chief Executive Officer of European Green Transition, said:

"This Option agreement is an example of EGT's strategy in action, broadening our focus and expanding our scope to access green economy projects in Europe. The Limni Project perfectly fits our aim to pursue what we believe are high quality opportunities where we can potentially generate near term cash flow efficiently, while also prioritising the environment and local stakeholders. 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. It also aligns with the EU's recently adopted Critical Raw Materials Act which mandates that at least 15% of the EU's annual consumption of critical materials should come from recycling.

"I have personal experience and knowledge of the project, having worked on it back in 2017 and even then, the project demonstrated potential value as a major copper tailings recycling project. We see potential to generate modest initial cash flows from this project within the first 12 months, should we choose to exercise the Option.

"In addition to the Copper Tailings Recycling Project, the site offers an excellent opportunity to support the development of the solar industry within Cyprus, one of Europe's optimal locations for solar irradiation. Around 80% of Cyprus' energy supply is currently based on fossil fuels, providing an opening to develop and operate a domestic, renewable energy source."

Investor presentation

EGT's management team will provide a live presentation via the Investor Meet Company platform on Monday 29 April 2024 at 5pm BST regarding this latest update.

The presentation is open to analysts and investors; those who already follow EGT on the Investor Meet Company platform will automatically be invited. Investors can sign up to Investor Meet for free and add European Green Transition plc to their company dashboard at the below link:

https://www.investormeetcompany.com/european-green-transition-plc/register-investor  

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Copper Tailings Recycling Potential from Limni Copper Mine

Limni, near Polis in western Cyprus, was historically mined by Cyprus Sulphur and Copper Company ("CSCC") producing over 8.1 Mt at 1.11% Cu between 1937 and 1978. The open pit mine was approximately 900 m long, 400 m wide and 200 m deep and was backfilled with tailings between 2010 and 2012 as part of an EU funded restoration project.

The EU funded infill, using tailings taken from the original tailings site near the coast, has led to the circulation of metals in solution in the pit. Rainfall, especially in winter, results in water runoff that is enriched with metals, which are potentially recoverable. Copper-enriched waters discharging from the historic copper mine have a distinctive blue colour and a straightforward, capital efficient copper recovery circuit has been proposed by the current owners to extract the copper from easily accessible pit waters. If feasible, the project could quickly be put into operation with prospects of near-term revenue generation.

Treatment of copper enriched water at the site could potentially recover a meaningful but as of yet undetermined amount of copper and future due diligence will focus on this potential in the near term. The conceptual estimate of contained copper is based on historic recorded Limni production and assuming 85% recovery at the time however ore from nearby deposits was also processed at the Limni facility and those tailings also now reside in the backfilled pit. The present owners and EGT believe that this disturbed site is ideal for the recovery of additional in-situ copper and also for clean renewable projects that would contribute positively to the local environment and economy.

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Copper Tailings Recycling Programme

There is strong evidence that the backfilled material in the Limni Mine contains dissolvable copper as seen in the blue water in the stream draining from the backfilled pit and the blue sulpho-salts found in evaporated ponds on the floor of the backfilled pit. The backfill material is largely believed to be oxidised after c.30 years sitting in a tailings pad near the coast while roadways of coarse waste were placed in the pit to deposit the fine tailings throughout the pit. The mix of material should improve permeability for pumping.

A simple hydraulic pumping system has been proposed to direct copper-rich solutions from the old Limni pit with potential to utilise existing methods such as sulphide cementation to extract sufficient copper to make a profitable enterprise from a relatively small, containerised type of water treatment plant.  

In order to test the concept, a small number of large diameter holes would be required in the backfill of the pit so that samples can be obtained and pumping tests can be conducted. It is known that backfilled waste roads were placed in the pit so that tailings could be trucked into the pit and dumped. The location of these roads has been digitised from historic satellite imagery. As a result, the coarser material in the roads would represent permeable pathways for copper-enriched waters that can be targeted.

The concept for recovery involves both extraction wells and re-injection wells so that little or no additional water is required. The Company plans to work with specialist consultants and local researchers to develop a work plan and demonstrate the concept before moving ahead.

Opportunity to Develop a Solar Power Programme

The Company intends to explore the opportunity for a second revenue stream at the Copper Tailings Recycling Project with the site used as a solar power facility. It is EGT's intention that the funding of any such solar power facility would be funded entirely by an existing solar power provider with the potential for EGT to receive an annual long-term revenue stream from the solar power operator.

Several south- to west-facing areas around the mine have been identified and development of solar arrays could proceed both in parallel with the water retreatment or after the remaining copper has been extracted from the site.

The directors believe there is excellent infrastructure with an existing power sub-station located at the Limni site along the road to the pit and immediately adjacent to a large potential solar site which could be terraced. The Company plans to further verify the solar energy potential during the due diligence phase and the current owner has proposed a concentrated solar plant with parabolic solar arrays in order to provide more stable supplies of electricity however both solar voltaic and concentrated solar energy options can be considered.

Delivering Environmental and Economic benefits

The Cypriot authorities and local stakeholders, utilising EU funds, undertook significant work to restore the historic tailings site at Polis, near the coast at Limni. The removal of the tailings to the confines of the Limni pit has now created a further opportunity. By controlling the movement of acidic, metal-rich water in the area, while extracting metals in solution, the quality of both surface and ground water could be further improved, leaving less discharge to the natural environment and contributing positively to the local community.

In addition, the solar potential of the site would significantly support Cyprus' transition away from imported fossil fuels towards an indigenous, sustainable source of renewable energy.

Figure 1 - Photo of copper-rich water at Limni taken by Aiden Lavelle, when he worked on the project in 2017

Figure 2 - Photo of copper-rich water at Limni taken by Aiden Lavelle, when he worked on the project in 2017

Figure 3 - Photo of copper-rich water at Limni taken by Aiden Lavelle, when he worked on the project in 2017

Figure 4 - Photo of Limni infilled site taken in 2017 by Dr. Michael Green

Enquiries

European Green Transition plc

Panmure Gordon - Nominated Adviser and Broker

Camarco - Financial PR

Notes to Editors

European Green Transition plc (listed on the AIM London Stock Exchange under the ticker "EGT") is a business operating in the green economy transition space in Europe. EGT intends to capitalise on the opportunities created by Europe's transition away from fossil fuels to a green, renewables-focused economy. The Company plans to expand its existing portfolio of green economy assets through M&A, targeting what it believes to be distressed and undervalued projects. EGT sees substantial opportunities to deliver value from its M&A pipeline, which includes critical material, wind, solar, processing and recycling projects.

EGT's highly experienced leadership team have a strong track record of building successful public companies through the acquisition of distressed assets. EGT plans to replicate this approach, creating a sustainable and profitable business while generating shareholder returns.

The Company's current portfolio of green economy assets includes the Olserum Rare Earth Project in Sweden. The Olserum project is one of Sweden's projects of "National Interest" and has the potential to become Europe's first operating REE mine. EGT own additional projects in northern Sweden and Germany which have defined and tangible upside with potential to realise near-term inflection points in a cost effective manner. EGT's objective is to build a profitable business while aiming to monetise some of its assets through sale or partnership with larger industry players or European end users. The team is focused on success while remaining committed to its defined ESG strategy, ensuring excellent development practices across all projects in addition to regular local community engagement.

For more information visit www.europeangreentransition.com or follow us on Twitter and LinkedIn.

Important Notices

This announcement includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''plans'', ''may'', ''will'' or ''should'' or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical fact included in this announcement are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding the directors' or the Company's intentions, beliefs or current expectations.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and therefore are based on current beliefs and expectations about future events. Forward-looking statements are not guarantees of future performance and the Company's actual operating results and financial condition, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. In addition, even if the Company's operating results, financial condition and liquidity, and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods. Accordingly, prospective investors should not rely on these forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. The Company expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.