- Battery materials company Euro Manganese (EMN) will buy back and end a 1.2 per cent royalty interest in the Chvaletice Manganese Project, in the Czech Republic
- The company has purchased the interest for US$4.5 million (around A$5.8 million)
- Based on a 2019 preliminary economic assessment (PEA), eliminating the royalty will save US$91.1 million (around A$117 million) in expenditures over Chvaletice’s 25-year mine life
- The elimination will also increase the after-tax net profit value of the project by US$25.3 million (approximately 4 per cent or A$32.6 million)
- On the market this morning, Euro is up 4.76 per cent and is trading at 55 cents per share
Euro Manganese (EMN) will purchase and end a 1.2 per cent royalty interest in the Chvaletice Manganese Project.
The battery materials company has purchased the interest for US$4.5 million (A$5.8 million).
Based on a 2019 preliminary economic assessment (PEA), eliminating the royalty will save US$91.1 million (around A$117 million) in expenditures over Chvaletice’s 25-year mine life.
The elimination will also increase the after-tax net profit value of the project by US$25.3 million (approx. A$32.6 million).
Euro’s main focus is on advancing the development of Chvaletice. The proposed project entails reprocessing a significant manganese deposit in mine tailings from a decommissioned mined in the Czech Republic.
“Based on the 2019 PEA results and assumptions, this royalty buy-out enhances the project’s economics and the payment terms allow the company substantial financial flexibility,” Euro Manganese CEO Marco Romero said.
“We continue to evaluate other potential value-enhancing opportunities for the project.”
On the market this morning, Euro is up 4.76 per cent and is trading at 55 cents per share at 10:55 am AEST.