Euro Manganese (TSX-V:EMN) has closed an C$11.2 million ($12.3 million) financing package to be used to support ongoing development of the Chvaletice Manganese Project.
The European Bank for Reconstruction and Development (EBRD) and renowned Canadian billionaire investor Eric Sprott have emerged as significant shareholders by participating in the raise.
Canaccord Genuity (Australia) and Foster Stockbroking acted as joint lead Managers and bookrunners for the financing.
The net proceeds of the financing will also be used to support customer engagements to secure additional offtake term sheets and strategic investments, the operation of the demonstration plant, as needed, to market the company’s product to potential customers, and to advance permitting.
As announced earlier this month, the company will be appointing a new CFO in the coming weeks. Until such time, following the departure of Dean Larocque as CFO on 30 May, CEO Martina Blahova will serve as interim CFO.
Blahova says the strong support demonstrated by both existing shareholders and new investors, including the notable participation of Eric Sprott is impressive.
“As Euro Manganese’s largest shareholder, EBRD’s investment reinforces its support and commitment to the Chvaletice Project. This critical financing enables the Company to pursue certain key milestones and advance project development. We thank shareholders for their ongoing support,” says Blahova.
In an early warning disclosure to the market, as a result of the placement, Sprott now owns 11.7% of the outstanding shares on a non-diluted basis and 20.9% of the outstanding shares on a partially diluted basis assuming exercise of some warrants.
“The securities are held for investment purposes. Mr Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors,” the disclosure says.
Manganese is the 12th most abundant element in the Earth’s crust. The bulk of global production occurs in South Africa, China, Australia, Brazil, India, and Gabon.
While manganese is a common metal in many parts of the world, it is very rare in the European Union. However, it is an important raw material to a multitude of industries, and large portions of the world economy depend on its reliable supply.
High-purity manganese products are essential raw materials needed by the EU’s fast-growing electric vehicle and lithium-ion battery industries. High-purity refers to a suite of highly refined finished products that are essential to most lithium-ion batteries. Its use and demand are increasing rapidly, particularly in Europe.
Write to Adam Orlando at Mining.com.au
Images: Euro Manganese
