Euro Manganese Inc has key European role validated by EBRD CAD 8.5 million investment


The European Bank’s investment for Reconstruction and Development will benefit the company as its Chvaletice Manganese project progresses through development, project finance and production.

Euro Manganese Inc (ASX: EMN, TSX-V: EMN, OTCQX: EUMNF) has had its key role in the European Union strategy aimed at ensuring the security and sustainability of the supply of resources recognized and validated by the agreement from the European Bank for Reconstruction and Development (EBRD) to invest CAN $ 8.5 million in the company.

These funds will support the company’s development of the Chvaletice Manganese project in the Czech Republic, at the heart of Europe’s booming electric vehicle and battery manufacturing industries.

ERBD’s investment and relationship will be beneficial to the company as the Chvaletice project progresses in development, project financing and production.

Strategic investment welcomed

EMN’s new Chairman and CEO, Dr Matthew James, said: “The company welcomes this strategic investment, which aligns the interests of the company with those of the EBRD and paves the way for eventual project financing of the EBRD and other European financial institutions.

As part of its due diligence process, the EBRD engaged an independent international natural resources consultancy firm to undertake a technical and environmental review of the Chvaletice Manganese project.

The EBRD’s environmental and social policy is progressive and in line with international best practices, to which EMN has responded.

The EMN is committed to respecting the EBRD’s environmental, social, economic and inclusion standards and equal opportunities.

“A strong vote of confidence”

“The successful completion of the technical and environmental due diligence process is a testament to the quality of our team and a strong vote of confidence in our Chvaletice Manganese project. We are proud to have met the bank’s high ESG standards, ”said James.

The company’s relationship with the EBRD is expected to be highly strategic as the European Union paves the way for greater security and sustainability of supply.

Supporting the development project of the only European primary producer of high purity manganese, an essential raw material for batteries, aligns with these EU objectives.

James added: “The EBRD investment confirms that EMN’s Chvaletice Manganese project is an important part of establishing a strong and sustainable European supply chain for electric vehicle batteries to support the accelerated transition of electric vehicles. ‘Europe towards electric mobility.

“This agreement also highlights the value of the company’s relationship with EIT InnoEnergy. “

Shares were up to 9.1% higher at AU $ 0.54, while the company’s market cap is around C $ 175.53 million.

Private placement

The investment is to be made through a private placement of 17.8 million common shares of the company which will be issued to the EBRD at a price of C $ 0.4775 per share.

Upon closing of the Offering, the EBRD will own approximately 4.5% of the Company’s common shares (on an undiluted basis).

As part of the placement, the EMN and the EBRD will enter into a project support agreement under which, under certain conditions, the EBRD will be granted rights enabling it to participate in future financing in order to maintain its pro-rata participation in the project. company.

Increase flexibility

The proceeds of the placement will increase REM’s flexibility in financing the Chvaletice manganese project, including the feasibility study, site preparation and operating costs of the demonstration plant, and environmental works, including including permits and other activities related to the final environmental and social impact assessment.

This agreement was facilitated by EMN’s relationship with EIT InnoEnergy, which entered into an agreement with EMN earlier in 2021 to help secure access to project finance and customer draw-off agreements.

Pursuant to this agreement, upon completion of the placement, REM will pay EIT InnoEnergy a research commission in cash equal to C $ 254,985, or 3% of the gross proceeds of the placement.

Committed to best practices

Eric Rasmussen, EBRD Director of Natural Resources, said: “The EBRD is delighted to support Euro Manganese and we are very pleased with the commitment of its management to implement best practices for modern and responsible mining.

“As a new shareholder, the EBRD will help Euro Manganese develop a local source of high purity manganese, which will improve Europe’s security of supply of raw materials for batteries.

The proposed Chvaletice project involves the reprocessing of a large manganese deposit hosted in the tailings of a decommissioned mine.

EMN’s objective is to become a leading, competitive and environmentally friendly primary producer of very high purity manganese-based products in the heart of Europe, serving the lithium-ion battery industry, as well as other high-tech applications.

About the EBRD

The EBRD is a multilateral bank that promotes private sector development and entrepreneurial initiative in nearly 40 economies on three continents.

The bank is owned by 71 countries, including the Czech Republic, as well as the EU and the European Investment Bank.

The EBRD’s investments aim to make the economies of its regions competitive, inclusive, well governed, green, resilient and integrated.

To date, the EBRD has invested more than 1.2 billion euros in 110 projects in the Czech economy.

About Carrie Scheer

Check Also

Is this series coming in 2022! – Overview of the landscape

Netflix’s heart-pounding action flick “Extraction” remains the company’s most popular film. In its first four …