EMN now has $30M to install, commission and operate its Demonstration Plant
EuroManganese (ASX:EMN) has today announced an oversubscribed private placement of AU$30 million (CAD$29 million), with strong institutional participation.
Money raised will be used to further advance its Chvaletice Manganese Project in the Czech Republic.
Specifically, proceeds will be used for completing the installation and commissioning of EMN’s high-purity manganese demonstration plant.
EMN now has the funds required to install, commission and operate the Demonstration Plant and to finalise its Definitive Feasibility Study and Final Environmental Impact Assessment.
This will all take place during the next 12 months.
The offering is intended to close in two tranches. Tranche One will be for $25M and is expected to close on or about 30 March, 2021. Tranche Two for $5M is expected to close as soon as practicable after receipt of shareholder approval.
The second tranche 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.
Last week, that opportunity grew larger following Volskwagen’s Power Day presentation, in which the car manufacturing giant stated that it wants to standardise on one type of battery cell, and that this “volume cell” will contain “high manganese content”.
Volkswagen says that this “volume cell” is going to make up the majority of its production.
Given its project is located in Eastern Europe in the Czech Republic, EMN could meet Volkswagen’s required sustainability and local supply needs in future.
VW also announced that its fourth EV factory may possibly be built in the Czech Republic.
EMN is already in discussions with several potential project partners and customers who are attracted to the unique characteristics of the Chvaletice Manganese Project.
Certainly, the exceptional environmental footprint of the Chvaletice Manganese Project would be attractive to a company such as VW. This footprint has already had a desired effect in attracting several project partners and customers to the table for ongoing discussions.
Notably, EMN stands to become the only primary producer of battery grade manganese products in Europe, with the potential to provide up to 50% of projected 2025 European demand for these products, and 28% of its anticipated 2030 requirements.
Marco Romero, President and CEO of EMN believes the latest fundraising activity will assist EMN in advancing these discussions
“We are very pleased to see such strong and high-quality investor interest in this equity offering,” Romero said.
“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.
“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.”
In short, the European Union government backed entity EIT InnoEnergy will invest €250,000 (AU$384) to fast track EMN’s project and also help EMN secure up to €362M to develop their project.
EIT InnoEnergy is the innovation engine for sustainable energy across the European Union, including accelerating innovation and commercialisation along the entire battery value chain.
Diego Pavia, CEO of EIT InnoEnergy has this to say about their investment and support of EMN: “Euro Manganese’s proposed development is the only sizeable and economically recoverable manganese resource on the European continent. It represents a unique opportunity for Europe to secure a measure of self-sufficiency in manganese, which is a critical battery raw material.”
About the Chvaletice Manganese Project
The Chvaletice Manganese Project entails reprocessing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic.
EMN’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving both the lithium-ion battery industry, as well as other high-technology applications.