Europa Metals Ltd said on Thursday it needed more funds to remain viable as the lead, zinc and silver developer reduced its loss after exploration spending dropped.

Releasing its results for the first half to December on Thursday, the Perth-based group said its operating commitments will require further funding in the next twelve months.

As at December 31, cash and short-term deposits stood at A$488,964, down 25% from A$653,990 at June 30.

‘The ability of the group to continue as a going concern is principally dependent upon its ability to raise further funds as required from the issue of equity,’ Europa Metals said.

Pretax loss for the first half that ended December 31 narrowed to A$248,761 from A$1.2 million a year earlier.

Exploration expenditure dwindled to A$9,315 from A$853,355. The company said back in October 2023 it had completed formal application for a mining licence in Spain over its Toral project.

‘All necessary studies have now been completed and lodged with the relevant authorities and departments within the Castille and Leon regional government,’ it said.

Following exploration, Europa Metals said it considered underground mining as the most technically, economically, and environmentally viable development option for Toral.

Revenue for the first half surged 56% to A$277,071 from A$177,279.

Shares in the lead, zinc and silver developer were unchanged at 1.55 pence each in London on Thursday. They were also flat at 25 rand cents in Johannesburg.

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