Euro Manganese Inc (ASX:EMN) (CVE:EMN) (FRA:E06) has launched a process with financial adviser Bacchus Capital Advisers (BCA) to secure a strategic partner to assist with development of Chvaletice Manganese Project in the Czech Republic.
ASX shares have surged up to 50% to an intra-day high of A$0.125 cents and are up from 7.2 cents at close on May 8.
The global search follows the company receiving expressions of interest from various parties to partner in the development of the important European waste recycling project.
This level of interest prompted the board to engage BCA to undertake a formal search to find an optimal ownership and/or capital structure that can support advancement of the project.
Chvaletice represents a sizeable, globally significant and advanced stage development opportunity that is expected to sustainably and competitively deliver battery-grade, high-purity manganese products.
The project is highly strategic due to its well-connected location at the heart of Europe’s fast-growing electric vehicle and battery production supply chain.
It stands to become Europe’s only primary producer of high-purity manganese products, which have a key role to play in lithium-ion batteries and in Europe’s push towards sustainable battery self-sufficiency.
The search process will see EMN and BCA evaluate all available options for the advancement and development of the project, to deliver maximum value of this strategic asset for the company and its shareholders.
While initial approached have been received, Euro Manganese has not fielded any binding offer at this time and there can be no certainty that this process will result in an offer or any form of transaction.
At the Chvaletice project, EMN will recycle historic mine tailings that host Europe’s largest manganese deposit and result in environmental remediation of this site.
EV and battery hub
The European Union is emerging as a major electric vehicle and battery manufacturing hub.
EMN’s goal is to become the preferred supplier of sustainably produced ultra-high-purity manganese products for the lithium-ion battery industry and for producers of specialty steel, high-technology chemicals and aluminium alloys.