- Resource developer Euro Manganese (EMN) is set to raise C$11.4 million (around A$12 million) for its Chvaletice Manganese Project in the Czech Republic
- The company issued almost 2 million shares at C$0.19 (A$0.20) and 58 million chess depositary interest (CDIs) for Australian investors at 20 cents
- The funds will be used to further progress the company’s Chvaletice Demonstration Plant, plus advancing project permits and its feasibility study
- Euro Manganese announced the placement was oversubscribed and received strong support from both new and existing shareholders
- On the market this morning, Euro is up 21.7 per cent and is trading for 28 cents
Euro Manganese (EMN) is set to raise C$11.4 million (around A$12 million) for its Chvaletice Manganese Project in the Czech Republic.
The company issued nearly 2 million shares at C$0.19 (A$0.20) and 58 million chess depositary interest (CDIs) for Australian investors at 20 cents each. The placement will be undertaken in two parts.
The funds from the private placement will be used to further progress Chvaletice Manganese Project, which includes the purchase, installation and operation of the Demonstration Plant and the advancing project permits plus feasibility study.
The company said the placement was oversubscribed and received strong support from both new and existing shareholders, which includes a number of new institutional and specialist resources investment funds.
President and CEO, Marco Romero, says he is pleased to see such strong support and interest from investors.
“It will provide us with the capital to accelerate progress at our Chvaletice Manganese Project and will allow us to push ahead with the project permitting, the feasibility study, and to initiate the testing phase of the supply chain qualification of our high-purity manganese products,” Marco said.
“We will place the order for our demonstration plant immediately,” he said.
Canaccord Genuity was appointed Lead Manager and Brookrunner to the placement with Bacchus Capital.
Additionally, Canaccord will receive 6 million broker warrants to be used between 36 months from the closing of the placement. A total of 3 million of the broker warrants will have an exercise price of C$0.30 (A$0.32) and the other half will be priced at C$0.35 (A$0.37).
The demonstration Plant
The Demonstration Plant (DP) is a 7-times scale up of the projects successful pilot plant built in 2019.
“[It] is designed as a locked-cycle, semi-batch, manually operated system of eleven interconnected modules that can be utilised as a circuit or as stand-alone components,” the company posted.
The DP will allow Euro to build on the successful past metallurgical test work and pilot plant testing, which has seen cases exceed the ultra-high purity manganese specifications which are needed by high-tech customers.
The DP will be delivered by a fixed-price turnkey engineering, procurement and construction contract, which will help with the company supply chain qualification process with major parties within the European and global lithium-ion battery industry.
On the market this morning, Euro is up 21.7 per cent and is trading for 28 cents at 2:45 pm AEDT.