The Chvaletice project represents a waste-to-value recycling and remediation opportunity that involves reprocessing old tailings from a decommissioned mine, and is the only sizable resource of manganese in the European Union (EU)
Euro Manganese to advance Chvaletice manganese project. (Credit: nettetal10 from Pixabay)
Euro Manganese has signed agreements with OMRF, managed by the Orion Resource Partners, to secure $100m financing for the development of its Chvaletice manganese project in the Czech Republic.
The Canadian mineral resource company will receive the funding in two tranches, a $50m loan facility, which can be converted into a 1.29-1.65% royalty on Project revenues.
It will receive the second tranche of $50m in exchange for a 1.93-2.47% royalty on project revenues, after reaching the Final Investment Decision (FID) and other conditions.
The royalties will be calculated on a quarterly basis and the sliding scale rate is subject to high-purity manganese product prices during the respective quarter, said Euro Manganese.
Euro Manganese will use proceeds from the package to fund the development activities at the Chvaletice manganese project, including G&A expenses.
Euro Manganese president and CEO Matthew James said: “This is a transformative transaction for Euro Manganese, providing a Funding Package that facilitates the best possible pathway to a final investment decision and representing a collaboration between Euro Manganese, Orion, and Stifel.
“The non-dilutive, tranche structure minimises the cost of funds and reduces future project financing requirements.
“This further validates the robust nature of the Chvaletice Project and our Team’s ability to deliver this strategic battery raw material project for Europe to the highest of standards.”
Euro Manganese is a battery materials company focused on producing high-purity manganese used in the electric vehicle industry.
The company is advancing the development of the Chvaletice manganese project and exploring an early-stage opportunity to produce battery-grade manganese products in Québec.
The Chvaletice project represents a unique waste-to-value recycling and remediation opportunity that involves reprocessing old tailings from a decommissioned mine.
It is also the only sizable resource of manganese in the European Union (EU), which positions Euro Manganese to provide battery supply chains with critical raw materials.
Stifel Nicolaus Europe served as the financial advisor and Norton Rose Fulbright as legal counsel to Euro Manganese, on this transaction.
As part of the transaction, the company has agreed to pay Stifel a cash placement fee equal to 2.5%, upon closing of each portion of the convertible loan facility, and the royalty financing.