Hispania Resources Partners with Calveron Metal for Lumbrales Property Development
News related to:Hispania Resources Inc · 2 min read
Hispania Resources Inc, a mineral exploration company focused on properties in Spain, has entered into a significant agreement with Calveron Metal Resources LDA, a Portuguese firm, to develop the Lumbrales property. The transaction, valued at up to €4.5 million, marks a major step forward for Hispania in its exploration and development efforts in Spain.
The Lumbrales property, located in Castille, Spain, is situated on the Stanniferous Iberian Belt, a region known for its rich deposits of tin and tungsten. Hispania acquired the property from Siemcalsa and has since conducted extensive due diligence and local engagement. Over the past two and a half years, the company has invested approximately €450,000 in the site, including a drilling program.
Under the terms of the agreement, Calveron will have the opportunity to earn a 100% interest in the Lumbrales property through a series of staged investments. The first phase, which runs from September 15, 2026, to September 1, 2027, requires Calveron to spend at least €400,000. This includes a minimum of €150,000 by October 10, 2026, and €50,000 by October 31, 2026. In return, Hispania will issue Calveron 200,000 euros worth of shares.
Upon successful completion of the first phase, Calveron will acquire a 25% interest in the Lumbrales property. The second phase, from September 1, 2027, to September 1, 2028, requires an additional €500,000 in expenditures, with Hispania receiving an additional 350,000 euros worth of shares. This will increase Calveron's interest to 50%. The final phase, from September 2, 2028, to September 1, 2029, involves a further €1,000,000 in expenditures, with Hispania receiving 450,000 euros worth of shares. Upon completion, Calveron will have a 75% interest in the property.
Calveron will have the option to acquire the remaining 25% interest from Hispania for €1,000,000 within three years following the completion of the third phase. This option reflects the company's confidence in the potential of the Lumbrales property.
Hispania's CEO, Norman Brewster, expressed optimism about the agreement, stating, "With Calveron's knowledge of the Portuguese and Spanish regions, they were a great fit for us to work with. Both parties have been completing due diligence and analysis over the past year, and with improved metals pricing, this transaction will push the Lumbrales project forward."
The transaction also includes a net smelter royalty (NSR) agreement. Hispania will retain a 1.5% NSR on all minerals and metals produced from the project. Calveron has the option to extinguish this NSR by paying Hispania €2,500,000.
Brewster added, "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 the country."
Hispania Resources Inc is currently focused on developing three core assets in Spain: the copper, zinc project Otero, the formerly producing tin project Lumbrales, and the copper, zinc Puebla de la Reina project. The company's management team, with over 120 years of combined experience in mineral exploration and production, is well-positioned to drive the development of these assets.