Euro Manganese Inc (ASX:EMN) (CVE:EMN) has received strong support for an oversubscribed private placement to raise C$11.4 million (A$12 million) which will further progress development of the flagship Chvaletice Manganese Project in the Czech Republic.
The issue was oversubscribed and received strong support from new and existing shareholders, including a number of new institutional and specialist resources investment funds.
Proceeds will progress the Chvaletice project including the purchase, installation and operation of a demonstration plant and advancing the project’s permitting and feasibility study.
"Capital to accelerate progress"
President and CEO Marco Romero said: “This equity offering will provide us 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.
“We will place the order for our demonstration plant immediately.”
The demonstration plant is a key element of the Chvaletice development strategy and will allow EMN to build on successful past metallurgical test-work and pilot plant testing, which products to date have met and in some cases exceeded the ultra-high purity manganese specifications required by the most demanding high-tech customers.
This plant will be delivered via a fixed-price turnkey EPC contract, accelerating the company’s supply chain qualification process with major parties within the European and global lithium-ion battery industry.
EMN's technical team has completed the basic design, engineering, planning and permitting of this high-purity electrolytic manganese metal (HPEMM) and high-purity manganese sulphate 3 monohydrate (HPMSM) plant so that it can produce multi-tonne, high purity manganese finished product samples for customer testing.
The design is a seven-times scale-up of the project’s successful pilot plant built in 2018 and the new plant is designed as a locked-cycle, semi-batch, manually operated system of 11 interconnected modules that can be utilised as a circuit or as standalone components.
This plant will be located in two existing buildings adjacent to the Chvaletice tailings site and produce up to 100 kilograms per day of dry crystalline HPMSM made from around 32 kilograms of HPEMM.
The offering is intended to close in two tranches, comprising of:
- Tranche one: 716,384 shares and 31,183,616 CDIs for aggregate gross proceeds of around C$6.061 million, expected to close on or about October 28, 2020; and
- Tranche two: 1,216,862 shares and 26,883,138 CDIs for aggregate gross proceeds of approximately C$5.339 million which will be subject to shareholder approval as required by Listing Rules 7.1 and 10.11.1 of the Australian Securities Exchange.
Canaccord Genuity Australia Ltd is acting as lead manager and bookrunner to the offering, with Bacchus Capital Advisers Limited acting as financial adviser to the company.