- Bacchus Capital advised Euro Manganese on its oversubscribed international fundraising
- Proceeds of the offering will be used to further advance the Chvaletice Manganese Project, allowing completion of all site and technical work required for a final investment decision expected in 2022
- Offering was anchored by a strategic investor and an ESG-focused fund, with strong support from several existing institutional shareholders
Bacchus Capital Advisers Limited (“Bacchus Capital”), the independent investment and merchant bank specialising in cross border public market M&A, and natural resources sector ventures, is pleased to have advised the battery materials company Euro Manganese Inc. (TSX-V / ASX: EMN) on its successful A$30 million (C$29 million) private placement.
Bacchus Capital has been working closely with Euro Manganese in a financial advisory capacity, and has helped garner support from investors with a strong stance on environmental, social and corporate governance (“ESG”) issues.
Details of the raise were released by Euro Manganese on Monday 22 March 2021, with the private placement offering comprising 50,000,000 CHESS Depositary Interests (“CDIs”, with each CDI representing one common share at a price of A$0.60), and Canaccord Genuity (Australia) Limited acting as Lead Manager and Bookrunner to the offering. The offering was anchored by a strategic investor and an ESG-focused fund, and received solid backing from several existing institutional shareholders.
Driven by an exceptional environmental footprint
Euro Manganese aims to become a primary producer of ultra-high-purity manganese products in Europe through the development of its 100% owned Chvaletice Manganese Project, which is located in the Czech Republic. Manganese is necessary for the lithium-ion battery industry, as well as other high-technology uses.
Demand for high-purity manganese products has continued to grow and the latest market developments, such as renewed focus on electric vehicle targets and the increased need in Europe for lithium-ion battery products, have further enhanced Euro Manganese’s prospects. Furthermore, the Chvaletice Manganese Project is deemed to have an exceptional environmental footprint, which is undoubtedly attractive to those committed to ensuring ESG is at the core of new investments.
Marco Romero, CEO of Euro Manganese, stated: “The demand for high-purity manganese products continues to grow and the latest market developments have further improved our prospects. Volkswagen Auto Group recently announced plans to use a high proportion of manganese in the batteries that will be used in the largest segment of its future electric vehicle production.
“With demand for electric vehicles only set to grow across the region as countries strive to achieve decarbonisation targets, it appears that Euro Manganese is very much in the right place at the right time.”
Funding development and production
The offering is intended to close in two tranches. The first consists of an issuance of 41,666,666 CDIs for aggregate gross proceeds of A$25 million (approximately C$24.2 million) and is expected to close on or about 30 March 2021. The second tranche consists of the issuance of 8,333,334 CDIs for aggregate gross proceeds of A$5 million (approximately C$4.8 million), upon receipt of shareholder approval.
The company has earmarked the proceeds of the offering to advance its Chvaletice Manganese Project. “We now have the funds required to install, commission and operate our Demonstration Plant and to finalise our Definitive Feasibility Study and Final Environmental Impact Assessment during the next 12 months,” Mr Romero said.
The company also stated that the second tranche of funding will be used to introduce two new institutional investors that have strong, positive views on ESG projects and the market opportunities for environmentally friendly, high-purity manganese in Europe.
