Hispania Resources Announces Transaction at Lumbrales Property
Hispania Resources Inc. (ticker ESPN) has entered into an earn-in agreement with Calveron Metal Resources LDA to acquire up to a 100% interest in the Lumbrales property in Spain through a Joint Venture Company (JVC). The transaction is structured in three phases of expenditures totaling 1,900,000 Euros, with Calveron earning 25%, 50%, and 75% interests in the JVC upon the completion of each respective phase.
Under the terms of Phase 1, Calveron must spend not less than 400,000 Euros between September 15, 2026, and September 1, 2027. Specific milestones require 150,000 Euros to be spent before October 10, 2026, and an additional 50,000 Euros before October 31, 2026. Upon completion of this phase, Hispania will receive 200,000 Euros worth of shares in Calveron or its parent company and will hold a 25% interest in Lumbrales via the JVC.
Phase 2 requires expenditures of 500,000 Euros between September 1, 2027, and September 1, 2028. Upon completion, Hispania will receive 350,000 Euros worth of shares in Calveron or its parent company, increasing its interest in the JVC to 50%. Phase 3 involves expenditures of 1,000,000 Euros between September 2, 2028, and September 1, 2029. Upon completion of this final phase, Hispania will receive 450,000 Euros worth of shares in Calveron or its parent company and will hold a 75% interest in the JVC.
Upon reaching a 75% interest, Calveron has the option to acquire the remaining 25% from Hispania for 1,000,000 Euros. This option may be exercised at any time within three years following the completion of Phase 3. Additionally, Hispania retains a 1.5% Net Smelter Royalty (NSR) on all minerals and metals produced from the Project. Calveron may extinguish this NSR at its sole discretion by paying 2,500,000 Euros.
The total potential payments to Hispania include 2,000,000 Euros in expenditures and 4,500,000 Euros from the NSR extinguishment, resulting in a total potential value of 6,500,000 Euros. This represents an estimated 3.4x return on expenditures, or a 10x return when including the NSR. Hispania has previously spent approximately 450,000 Euros on Lumbrales over the past two and a half years. The Lumbrales property is located in Castille, Spain, on the Stanniferous Iberian Belt and was previously acquired by Hispania from Siemcalsa. The project includes completed drilling programs and stakeholder engagement with local government.
Norman Brewster, Chief Executive Officer, commented on the deal: "This transaction goes to our belief that with our pedigree and experience in Spain, including finding and selling Iberian Minerals Corp. to Trafigura, we have the ability to identify and develop base metals assets in Spain and transact on these assets. The Lumbrales transaction is our first in Hispania and we are keen to continue to identify and develop assets in country, including our wholly owned Puebla de la Reina and Otero assets."
Brewster added, "With Calveron's knowledge of the Portuguese and Spanish regions, they were a great fit for us to work with, as both parties have been completing due diligence and analysis over the past year. With improved metals pricing, this transaction will push the Lumbrales project forward and we look forward to the developments with our partners at Calveron."