TORONTO, Jan. 9, 2023 /CNW/ - Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB: SNTAF) ("Strategic Minerals" or the "Company") today announced that it has entered into a Power Purchase Agreement ("PPA") for its Penouta Project, located in the northwestern province of Ourense in Spain.
The PPA provides for the supply of seven gigawatts of electricity to the Company for five years. A significant portion of the power will be from renewable energy sources and is expected to generate substantial cost savings.
"With the PPA, we will purchase electricity at a competitive, stable and predictable price, fixing long-term electricity supply costs and mitigating the risk of price volatility. The PPA aligns with our strategy to increase efficiency and reduce costs at Penouta as we continue to work at increasing production," said Jaime Perez Branger, CEO of Strategic Minerals. "In addition to the cost savings benefits, we will further our position as a leader in sustainability by reducing our carbon footprint through the use of renewable energy.
"To provide a model of the potential savings under the PPA, if the Company had the PPA in place in 2022, it would have achieved savings of approximately 52 percent, equivalent to a reduction in our electricity bill of about 810 thousand euros," he added.
Strategic Minerals' wholly-owned subsidiary, SMS, produces, identifies, explores, and develops mineral resource properties critical to the green economy, predominantly in Spain. SMS holds permits, and a production license for the Penouta Project, and a 30% carried joint venture interest in the Alberta II/Carlota Lithium Project. SMS is the largest producer of cassiterite concentrate and tantalite in the European Union and has been recognized within the EU as an exemplary company of good practices in the circular economy. The Company is well-positioned as a major producer of sustainable and conflict-free tin, tantalum, and niobium and, through the Alberta II/Carlota Joint Venture, is exploring for lithium. Strategic Minerals is a "reporting issuer" under applicable securities legislation in the provinces of British Columbia, Alberta, and Ontario.
Additional information on Strategic Minerals can be found by reviewing its profile on SEDAR at sedar.com and its website at www.strategicminerals.com.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release, including without limitation, management's beliefs regarding expectations relating to the increase in efficiency at Penouta, the mitigation of price volatility, the Company's position as a leader in sustainability and the projected costs savings had the PPA been in place in 2022, and other statements that are not historical facts. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strategic Minerals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks Factors" in the Company's Annual Information Form dated March 29, 2022, which is available for view on SEDAR at www.sedar.com. These risks include, but are not limited to, the risks associated with the mining and exploration industry, such as operational risks in development or capital expenditures, the uncertainty of projections relating to production, and any delays or changes in plans with respect to the exploitation of the site. Strategic Minerals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Strategic Minerals Europe Corp.
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