#EGT European Green Transition – Option Agreement to Acquire Copper Tailings Recycling Project in Cyprus April 29, 2024 – Posted in: European Green Transition Plc (EGT) – Tags: , , , ,

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

• Option offers EGT full, exclusive access to conduct additional due diligence on the proposed

Copper Tailings Recycling Project over a 12-month period.

• The past-producing Limni copper mine near Polis in western Cyprus produced over 8.1 Mt at

1.11% Cu between 1937 and 1978.

• A copper recovery circuit has been proposed to extract copper from existing pit waters at Limni

with potential to recover a meaningful but as of yet undetermined amount of copper. The

directors believe this could represent prospects of near-term revenue generation in a capital

efficient manner.

• Option is in line with Company strategy to target green economy assets in Europe.

• The site and surroundings also offer an excellent long-term location to potentially establish a

solar power facility following the completion of the tailings recycling. Should this proceed, EGT

would intend to partner with an existing solar power operator who could fund the facility with

EGT maintaining a long-term revenue stream.

• 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

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.

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 backfilledwaste 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 2017Figure 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

Aiden Lavelle, CEO +44 (0) 208 058 6129

Jack Kelly, CFO

Panmure Gordon – Nominated Adviser and Broker

James Sinclair-Ford / Dougie McLeod / Ivo Macdonald

Mark Murphy / Hugh Rich / Rauf Munir

+ 44 (0) 20 7886 2500

Camarco – Financial PR

Billy Clegg, Elfie Kent, Lily Pettifar, Poppy Hawkins Europeangreentransition@camarco.co.uk

+ 44 (0) 20 3757 4980