Eric Sprott investing $3.0 million in Euro Manganese
Euro Manganese Inc. [EMN-TSXV-ASX] said that due to strong investor demand, a previously announced financing, including a placement in Euro Manganese Inc. of common shares and CHESS depository interests (CDIs), has been upsized to $9.8 million.
That’s up from an earlier target of up to $5.9 million at a pre-consolidation price of $0.036 (as defined below).
It said th European Bank for Reconstruction and Development (EBRD) condition that the company raise $8 million has been met. Proceeds will be used to support continuing development of the Chvaletice Manganese Project in the Czech Republic.
Euro Manganese said it is pleased to report that Canadian financier Eric Sprott, via an Ontario numbered company, has agreed to subscribe for 16.7 million (83.3 million preconsolidation) securities for an investment of $3.0 million. Euro Manganese also said the EBRD has increased its investment to approximately $3.9 million. Additionally, the company is reducing the previously announced share purchase plan (SPP) amount to approximately $1.4 million, subject to receiving regulatory approval from the TSX Venture Exchange for the amount of units that form part of the SPP under the equity raising.
Euro Manganese share were unchanged at 40 cents on Wednesday and trade in a 52-week range of 45 cents and 12.5 cents.
As previously announced on March 6, 2025, and March 31, 2025, the company undertook a consolidation of its existing securities, including all shares represented by CDIs on the Australian Securities Exchange, at a ratio of one post consolidation share for five preconsolidation shares. Subscriptions for all new securities in the equity raising will be completed on a post consolidation basis.
The company has rescheduled the date of it annual and special general meeting from April 22, 2025 to May 15, 2025, where shareholders will be asked to approve the issuance of new securities and warrants to be issued under the placement and the SPP.
Euro Manganese is a battery metals company with a focus on becoming a leading producer of high-purity manganese for the electric vehicle industry and other high-technology applications. It aims to achieve that goal by developing the Chvaletice Manganese Project. The project is described as a “waste-to-value recycling and remediation opportunity” involving the reprocessing of old tailings from a decommissioned mine.
Euro Manganese said the Chvaletice project is the only sizable resource of manganese in the Europe. It said the asset puts the company in a position to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.
“The Chvaletice project gained real momentum in 2022,’’ the company has said. During the fourth quarter, the company filed a technical report related to a NI 43-101 feasibility study which outlines robust base case project economics. Initial capital is estimated at US$757.3 million, including total contingencies of US$106.5 million.
Forecast life of project net revenues are US$13.3 billion with EBITDA (earnings before interest, tax, depreciation and amortization) of US$8.1 billion.