Euro Manganese receives financial backing of European EIT
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.
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