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Euro Manganese stokes the coffers for trial production at Chvaletice
3 minute read
It appears that good news comes in threes with Euro Manganese Inc. (TSX-V;ASX:EMN) updating the market on Wednesday regarding a number of developments that will provide financial strength and operational stability in the near to medium-term.
Most importantly, management informed the market of the closing of the first tranche of the AUD$30 million (approximately CAD$29 million) private placement that was initially announced on 22 March.
This consists of the sale and issuance of approximately 41.6 million CHESS Depositary Interest (CDIs) with each CDI representing one common share at a price of AU$0.60 for gross proceeds of AU$25 million, representing C$24.2 million.
The second tranche of the offering, consisting of 8,333,334 CDIs at the same issue price is expected to close in May 2021, subject to and following shareholder approval.
Net proceeds will be used to advance the company’s Chvaletice Manganese Project in the Czech Republic.
More specifically, the funds will be employed in the completion, installation and commissioning of the company’s high-purity manganese demonstration plant.
These proceeds will also cover the initial year of operating costs of the demonstration plant, the completion of the project’s permitting and feasibility study, as well as meeting certain scheduled land acquisition payments.
Initial EIT InnoEnergy Investment
In another injection of capital, EMN received an initial investment of €62,500 (circa C$93,000) from EIT InnoEnergy.
This is the first of three payments totalling €250,000 agreed to by EIT InnoEnergy [RS1] in February.
These funds will be used to support ongoing work on the project’s definitive feasibility study and the commissioning of the demonstration plant.
This should position Euro Manganese to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.
It is worth noting that EIT InnoEnergy leads the industrial stream of the European Battery Alliance, an initiative launched by The European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe.
The support of EIT is intended to help accelerate the project’s successful integration into Europe’s electric vehicle (EV) battery value chain.
Czech government extends timeline for C$27 million in tax credits
In another positive development, management advised today that the company’s eligibility timeline for approximately C$27 million in investment incentives in the form of tax credits that were granted by the Czech Republic’s Ministry of Industry and Trade had been extended to 2025.
This will be of significant benefit given operational timelines have been pushed out due to the COVID-19 pandemic.
In another development on the financial front, Euro Manganese has granted stock options to certain officers, employees and consultants to purchase up to an aggregate of 2,350,000 shares.
The options are exercisable for a term of ten years at an exercise price of C$0.61 per share.
The options will vest one-third on the date of grant, and one-third on each of the first and second anniversaries of the date of grant.
Exceptions to these arrangements include the options granted to officers which vest in full five years from the date of grant, and 350,000 options granted to a consultant which vest one-third on the date of grant and one-third on each of the four and eight-month anniversaries of the date of grant.