Euro Manganese raises A$30 million in oversubscribed private placement to accelerate high-purity Chvaletice Manganese Project

Euro Manganese Inc’s (ASX:EMN) (CVE:EMN) (OTCMKTS:EROMF) (FRA:E06) private placement to raise gross proceeds of A$30 million (C$29 million) has received strong institutional participation and has been oversubscribed. This offering was anchored by a strategic investor and an environmental, social and governance (ESG) focused fund and also received strong support from several existing institutional shareholders. The second tranche of the offering will be used to introduce two new institutional investors with a strong positive view on ESG projects and the market opportunity for high-purity manganese in Europe. Net proceeds from the offering will go towards advancing the Chvaletice Manganese Project in the Czech Republic. Final investment decision in 2022 EMN president and chief executive officer Marco Romero said: “We are very pleased to see such strong and high-quality investor interest in this equity offering. “We now have the funds required to install, commission and operate our demonstration plant and to finalise our definitive feasibility study and final environmental impact assessment during the next 12 months. “This financing will allow us to complete all site and technical work required for a final investment decision expected in 2022. “In right place at right time” He said: “The demand for high-purity manganese products continues to grow and the latest market developments have further improved our prospects. “Volkswagen Auto Group recently announced plans to use a high proportion of manganese in the batteries that will be used in the largest segment of its future electric vehicle production. "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 offtake agreements. "Euro Manganese is clearly in the right place at the right time.” Placement details The company is undertaking a private placement offering of 50,000,000 CHESS Depositary Interests (CDIs), with each CDI representing one common share at a price of A$0.60 per CDI. The offering is intended to close in two tranches, comprising of: Tranche One: The issuance of 41,666,666 CDIs for aggregate gross proceeds of A$25 million (about C$24.2 million), representing the maximum number of securities that can be issued by the company under Listing Rule 7.1 of the Australian Securities Exchange (ASX). The tranche is expected to close on or about March 30, 2021; and Tranche Two: The issuance of 8,333,334 CDIs for aggregate gross proceeds of A$5 million (about C$4.8 million), representing the number of securities to be issued in excess of the company’s placement capacity permitted under ASX Listing Rule 7.1, which will be subject to shareholder approval to be sought at a special meeting of shareholders. This tranche is expected to close as soon as practicable after receipt of shareholder approval. Use of funds Proceeds from the offering will be used for completing the installation and commissioning of the high-purity manganese demonstration plant, initial year of operation of the demonstration plant, completing the project’s permitting and feasibility study, for certain scheduled land acquisition payments and for general corporate purposes. Euro Manganese holds a 100% interest in the Chvaletice Manganese Project, which entails reprocessing a large manganese deposit hosted in mine tailings from a decommissioned mine. The company’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity manganese products in Europe, serving both the lithium-ion battery industry, as well as other high-technology applications. Shareholder meeting The company expects to call and hold a special meeting of shareholders in early May 2021 to approve the issuance of CDIs under the second tranche of the offering. It hopes to file a management information circular in connection with the meeting in due course. The offering is subject to the approval of the TSX Venture Exchange. Canaccord Genuity (Australia) Ltd is acting as lead manager and book-runner with Bacchus Capital Advisers Ltd acting as financial adviser to the company. Talks with potential project partners The company continues its discussions with several potential project partners and customers who are attracted to the unique characteristics of the Chvaletice Manganese Project, including its European location, the high-quality of manganese products targeted by the company and the exceptional environmental footprint of the project. Funds raised from the placement and the resulting acceleration of project development initiatives will greatly assist the company in advancing these discussions.