Funding To Support Construction Of High-Purity Manganese Demonstration Plant
Euro Manganese Inc. (TSX-V / ASX: EMN) has undertaken a private placement offering for aggregate gross proceeds of A$30 million to advance its Chvaletice Manganese Project in the Czech Republic.
President and CEO, Marco Romero, said that specifically, proceeds will be used for completing the installation and commissioning of the company’s high-purity manganese demonstration plant, initial year of operation of the Demonstration Plant, completing the Project’s permitting and feasibility study, for certain scheduled land acquisition payments and for general corporate purposes.
The Offering was anchored by a strategic investor and an ESG-focused fund, and also received strong support from several existing institutional shareholders. The second tranche of the Offering will be used to introduce two new institutional investors with a strong positive view on ESG projects and the market opportunity for high-purity manganese in Europe.
Mr Romero said the company continues its discussions with several potential project partners and customers who are attracted to the unique characteristics of the Chvaletice Manganese Project, including its European location, the high-quality of the manganese products targeted by the company and the exceptional environmental footprint of the Project. The funds raised from the placement and the resulting acceleration of project development initiatives will greatly assist the company in advancing these discussions.
“We are very pleased to see such strong and high-quality investor interest in this equity offering,” Mr Romero said.
“We now have the funds required to install, commission and operate our Demonstration Plant and to finalize our Definitive Feasibility Study and Final Environmental Impact Assessment during the next 12 months. This financing will allow us to complete all site and technical work required for a final investment decision expected in 2022.
“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.
“In addition, EMN has secured support from EU-backed EIT InnoEnergy, which is intended to help us accelerate the Chvaletice Manganese Project and to secure strategic financing and customer offtake agreements. Euro Manganese is clearly in the right place at the right time.”