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Euro Manganese receives second tranche of EIT InnoEnergy funding for Chvaletice Manganese Project

Published: 22:52 27 Jul 2021 EDT

Euro Manganese Inc - Euro Manganese receives second tranche of EIT InnoEnergy funding for Chvaletice Manganese Project
Euro Manganese is developing its flagship manganese asset in the Czech Republic.

Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) has received the second tranche of funding from EIT InnoEnergy, bringing the European Union (EU)-backed entity’s investment to date to €187,500.

The battery materials company first announced EIT’s investment earlier this year, with the EU-backed entity expected to provide €250,000 in funding across three tranches based on a project support agreement.

EMN and its subsidiary, Mangan Chvaletice, will use the capital to support a definitive feasibility study and fund a proposed demonstration plant, which will provide large-scale, high-purity manganese samples for prospective customers.

To date, Euro Manganese has invested around C$30 million in Chvaletice’s development, while a further C$29 million was received from an oversubscribed private placement conducted in March this year.

Chvaletice represents “unique opportunity”

Speaking to the community’s investment in March, EIT InnoEnergy CEO Diego Pavia said Euro Manganese’s proposed development was the only sizeable manganese resource in the European Union.

“It represents a unique opportunity for Europe to secure a measure of self-sufficiency in manganese, which is a critical battery raw material.

“The Chvaletice Manganese Project has the potential to provide up to 50% of projected 2025 European demand for high-purity manganese, and around 28% of anticipated 2030 requirements.”

Euro Manganese president and CEO Marco Romero said: “The Chvaletice Project is Europe’s largest manganese resource and we plan to develop it using clean, commercially proven and state-of-the-art technology”

“We are grateful to have enlisted the support of EIT InnoEnergy and look forward to working with them to bring our project to fruition.

“By recycling the Chvaletice tailings, our Czech subsidiary, Mangan Chvaletice, will be providing Europe with high-purity manganese products that meet or exceed the EU and Czech Republic’s stringent environmental standards.”

The second tranche of EIT’s investment comes just one week after Euro Manganese extended the Chvaletice project’s development rights into 2026.

The fine print

As part of its project support agreement with EIT InnoEnergy, Euro Manganese received €150,000 in capital on Monday.

In exchange for each tranche of investment, the manganese developer will provide EIT with a parcel of common shares. This is calculated based on the tranche’s value in Canadian dollars, divided by the 10-day volume-weighted average price of Euro Manganese shares on the TSX Venture Exchange (TSX-V).

With the second funding tranche valued at C$185,162, the company is poised to issue 330,647 shares at C$0.56 apiece.

In late March, following the first C$92,850 investment, EMN vowed to issue 147,380 common shares at C$0.63 per share.

The share issue, which will see EIT secure nearly 480,000 common Euro Manganese shares based on its investment to date, will not settle until January next year and is subject to TSX-V approval.

Euro Manganese speeds ahead with Chvaletice manganese project in the Czech...

Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) President and CEO Dr Matthew James joins Proactive's Stephen Gunnion with the latest on the Chvaletice Project in the Czech Republic as the company positions itself for the push towards manganese rich batteries for the electric vehicle...

on 12/20/2022