- Battery materials company Euro Manganese (EMN) has completed the second tranche of its $30 million private placement
- The second tranche consisted of 8,333,334 CHESS Depositary Interests (CDIs) at 60 cents each, for $5 million in proceeds
- Euro Manganese will use the placement’s proceeds to advance its Chvaletice Manganese Project in the Czech Republic
- This will include completing installation, commissioning and initial operations of the manganese demonstration plant
- Euro Manganese is up 2.91 per cent and trading at 53 cents per share
Battery materials company Euro Manganese (EMN) has completed the second tranche of its $30 million private placement.
The company first announced plans for a two-tranche private placement on March 22, 2021. Nine days later on March 31, Euro Manganese closed the placement’s first tranche, which was very successful.
The first tranche consisted of 41,666,66 CHESS Depositary Interests (CDI’s), with each CDI representing one common share. At 60 cents per CDI, the placement’s first tranche produced $25 million in gross proceeds.
The company’s latest tranche consisted of a comparatively small 8,333,334 CDI’s, also at a price of 60 cents each. This resulted in gross proceeds of $5 million, bringing the private placement’s aggregate gross proceeds to the desired goal of $30 million.
Overall, Euro Manganese’s offering was well supported by several existing institutional shareholders. Canaccord Genuity acted as the offering’s lead manager and bookrunner, with Bacchus Capital Advisers (BCAL) acting as a financial adviser to the company.
Euro Manganese will pay Canaccord a fee of $1,222,500 in cash and pay BCAL a fee of $277,500. The company has already issued 2.5 million broker warrants to Canaccord, which are exercisable at 58 cents at any time before May 10, 2023.
Euro Manganese will use the $30 million in raised funds to advance its Chvaletice Manganese Project, located in the Czech Republic. In particular, this will include funding the completion of installing and commissioning the company’s high-purity manganese demonstration plant.
The proceeds will also cover the first year of operation at the demonstration plant, as well as certain scheduled land acquisition payments and general corporate purposes.
Euro Manganese is up 2.91 per cent, trading at 53 cents per share at 3:44 pm AEST.