Euro Manganese receives financial backing of European EIT
3 minute read
In a significant vote of confidence for the Chvaletice Manganese Project (CMP), Euro Manganese (TSX-V; ASX:EMN) and its wholly-owned Czech Republic subsidiary, Mangan Chvaletice, has secured the support of EIT InnoEnergy, a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology.
EIT InnoEnergy will marshal its broad network and resources to accelerate the Chvaletice Manganese Project’s successful integration into the European Union’s battery supply chain.
The group has agreed to help Euro Manganese in securing financing of up to €362 million for the commercial development of the Chvaletice Manganese Project.
Potential funding sources include Europe-wide and regional grant programs as well as European project finance and economic development banks.
A recent example of the support InnoEnergy can provide is where they led the Battchain consortium submission for €1.2b of Coronavirus Recovery Funds – Infinity Lithium is in line for a €256M euro capital injection if the InnoEnergy led bid is successful.
The Chvaletice Manganese Project stands to become the only primary producer of battery-grade manganese products with the potential to provide up to 50% of projected 2025 European demand for these products and 28% of its anticipated 2030 requirements.
At a time when ESG (environmental, social, governance) issues are becoming increasingly important, the project also brings local environmental and social benefits.
As tailings from the decommissioned mine are recycled to produce battery-grade manganese, a longstanding source of water pollution will be eliminated and high-quality jobs will be created for local communities.
Feasibility study, demonstration plant and offtake agreements pending
To expedite CMP and realise the benefits it brings to Europe, EIT InnoEnergy will provide initial funding of €250,000 in the company that will go towards ongoing work on a detailed feasibility study and demonstration plant, both targeted for completion by the end of 2021.
These will be market-moving developments for Euro Manganese given that they will reaffirm and perhaps represent an improvement on previous expectations regarding proof of concept and commercial viability, as well as being a valuable point of reference for potential offtake partners.
It is worth noting that EIT InnoEnergy will further assist Euro Manganese in securing offtake agreements with consumers of high-purity manganese products, including European electric vehicle, battery and cathode manufacturers.
In particular, the feasibility study paves the way for project development, opening the door for key milestones such as financing where support from EIT will very much come to the forefront.
Euro Manganese’s share price has surged 25% yesterday in the last two days with the importance of EIT backing acknowledged by the market.
While the company’s shares have surged more than ten-fold in less than six months, it would appear that investors are piling back into the stock in order to catch the second wave as numerous catalysts evolve in 2021.
Latest articles on Euro Manganese Inc.
More Commentary
Los Cerros confirms extensive gold porphyry mineralisation
08-07-2021
GTI completes drilling ahead of establishing uranium resource
06-07-2021
Los Cerros ready to grow another leg, driven by Tesorito results
28-06-2021
GTI Resources starts second round of uranium exploration drilling
25-06-2021S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.