Euro Manganese (ASX:EMN) gets shareholder approval for $5.5M private placement

• Euro Manganese (EMN) shareholders have voted to go ahead with the second tranche of a private placement, raising an additional $5.5 million
• The two-part placement raised a total of C$11.4 million (around A$11.8 million), but required shareholder approval for the second tranche
• The company’s primary focus is the development of the Chvaletice Manganese Project in the Czech Republic
• The funds raised will be used to place the order on the project’s demonstration plant, as well as permitting requirements and a project feasibility study
• Euro Manganese is down 9.30 per cent, trading at 39 cents

Euro Manganese (EMN) shareholders have voted to go ahead with the second tranche of a private placement, raising an additional $5.5 million.

The raise

The two-part placement raised a total of C$11.4 million (around A$11.8 million), but required shareholder approval for the second tranche as it was in excess of the company’s placement capacity under ASX rules.

A company director, as well as a company controlled by an EMN director, were also issued placement shares requiring shareholder approval.

The company will issue 1,216,862 common shares and 26,883,138 CHESS
Depositary Interests (CDIs) at a price of C$0.19 per share and A$0.20 per CDI (around A$0.20 and A$0.21), respectively.

Canaccord Genuity acted as lead manager and bookrunner for the offer, with Bacchus Capital Advisers acting as financial adviser.

Canaccord took a fee of A$571,568 plus six million broker warrants for its services. The warrants expire in December 2023, with half exercisable at C$0.30 and the other half at C$0.35 (around A$0.31 and A$0.36, respectively).

Bacchus will take C$127,645 (around A$132,000) for its consultation work.

The spend

The company’s primary focus is the development of the Chvaletice Manganese Project in the Czech Republic.

The funds raised will be used to advance a range of works at the project, including placing the order on the demonstration plant, permitting requirements, and a feasibility study.

The demonstration plant is a key element of EMN’s development strategy, building upon the successful past metallurgical test work and pilot plant testing.

So far, EMN’s product has met and in some cases exceeded the ultra-high purity manganese specifications required by high-tech customers.

The plant is on track for construction and commissioning, with expected delivery in mid-2021.

The company is hoping to lock in long-term commercial offtake arrangements with European chemical, battery and automotive companies.

Euro Manganese is down 9.30 per cent, trading at 39 cents at 12:52 pm AEDT.