- Euro Manganese (EMN) is set to raise $30 million via a placement to further advance its Chvaletice Manganese Project in the Czech Republic
- The proceeds will enable the battery materials company to complete all site and technical work required for a final investment decision in 2022
- The two-tranche placement will see the company issue 50 million CHESS Depositary Interests at 60 cents each, pending shareholder approval of the second tranche and approval from the TSX Venture exchange
- Euro Manganese says the offering was anchored by an ESG-focussed fund and attracted support from existing institutional investors
- Shares are trading 2.2 per cent lower at 65.5 cents per share
Euro Manganese (EMN) is set to raise $30 million via a placement to further advance its Chvaletice Manganese Project in the Czech Republic.
The private placement will offer 50 million CHESS Depositary Interests (CDIs) at 60 cents per CDI, for $30 million. The first tranche will issue 41.7 million shares for $25 million, while a second tranche will comprise around 8.33 million shares for a further $5 million.
The company says the proceeds will go towards completing the
installation and commissioning of its high-purity manganese demonstration plant as well as covering the first-year costs of the plant, completing a permitting and feasibility study, certain scheduled land acquisition payments and for general corporate purposes.
President and CEO Marco Romero says the raise will allow the company to “complete all site and technical work required for a final investment decision expected in 2022.”
He continued to say, “In addition, EMN has secured support from EU-backed EIT InnoEnergy, which is intended to help us accelerate the Chvaletice Manganese Project and to secure strategic financing and customer off-take agreements. Euro Manganese is clearly in the right place at the right time.”
A special meeting of shareholders has been scheduled for early May this year to approve the second tranche of the offering.
EMN expects to file a management information circular in connection with the meeting in due course.
Canaccord Genuity will act as Lead Manager and Bookrunner to the offering and receive 5 per cent of the aggregate gross proceeds.
Additionally, subject to shareholder approval, Canaccord Genuity will receive 2.5 million broker warrants with an exercise price of C$0.58 (around A$0.59) per share.
Shares are trading 2.2 per cent lower at 65.5 cents per share at 10:07 am AEDT.