Friel-backed EGT could be Europe’s first rare-earth elements miner after approval

The Cathal Friel-backed European Green Transition venture has been granted approval to begin its work plan at the Olserum Rare Earth project, which is located in Sweden.

The company plans to develop a portfolio of green economy assets in Europe. The Olserum Rare Earth project has the potential to become Europe’s first operating rare earth elements (REE) mine, European Green Transition (EGT) said.

REEs are metallic elements used in technology including electric vehicles and wind turbines.

The company’s plan for the Swedish project has been approved following consultation with landowners and local administrators. It plans to begin drilling work at the site in the second half of this year.

EGT has a plan for an initial drilling programme of up to 9,000 metres across a total of 42 drill holes, while the company can also change the programme within the approved working areas. This plan approval is valid for two years.

The REE deposit at the site is one of a handful of known deposits in Europe, with EGT describing these deposits as critical in the green energy transition.

The directors of EGT also pointed to the recently adopted European Critical Raw Materials Act, which looks to secure these materials directly in Europe.

“Olserum was designated a project of National Interest by the Swedish Geological Survey and has the potential to become a significant European Rare Earth Element (REE) resource,” chief executive Aiden Lavelle said.

“In addition to the Djupedal prospect nearby, our activities in the area will create jobs in the community and investment in the region, as well as potentially providing Europe’s industry with indigenous critical rare earth elements.”

EGT made its stock market debut on London’s Alternative Investment Market last month, raising £6.4m (€7.5m) before expenses from institutional investors and family offices.

It has offered an additional £500,000 in shares to retail investors.

This is the fifth flotation on the AIM undertaken by Cathal Friel, managing director of Raglan Capital.

Mr Friel, a former stock broker, is director and co-founder of EGT and is becoming well-known for raising equity via public markets for relatively early-stage businesses.

Oil executive Michael Nolan – who made a fortune when he sold stock market-listed exploration company Cove Energy to Shell in 2012 – is also behind the plans for EGT.