EMN.V - Catalysts.


Euro Manganese Inc. (EMN.V) is focused in advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The Project entails re-processing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic. EMN.V’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving both the lithium-ion battery industry,and other high-technology applications.


Coverage was initiated May 2021.


News releases


May 31 - Euro Manganese to Buy Back Chvaletice Royalties: 1) To purchase and extinguish an aggregate 1.2% royalty interest in the Chvaletice Manganese Project for US$4.5M; 2) Similarly, based these 2019 PEA assumptions, eliminating the royalty would reduce operating expenses by US$91.1M over the Project’s 25-year life.


June 14 - To Restart Pilot Plant in Response to Prospective Customers: Samples of high purity manganese products from pilot plant will accelerate supply chain qualification process. The pilot plant will produce small samples of high-purity manganese products for prospective customers, primarily in Europe, in advance of larger samples to come from the Project’s Demonstration Plant, targeted to begin operations in the first quarter of 2022.

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June 15 - Shares Begin Trading on OTCQX under Symbol EUMNF.


June 18 - Announces CEO Succession Plan


June 22 - Announces Grant of Stock Options: To certain employees to purchase up to an aggregate of 500,000 common shares of the Company. The stock options are exercisable for a term of ten years at an exercise price of $0.59 per common share. The Company also announces the cancellation of 484,669 unvested stock options.


July 20 - Secures Extension of Chvaletice Development Rights to 2026: Euro Manganese’s wholly owned subsidiary, Mangan Chvaletice s.r.o., has been granted an extension of its Chvaletice Exploration Licenses to May 31, 2026. Mangan Chvaletice has also been granted a new Preliminary Mining Permit, also valid to May 31, 2026.


July 27 - Announces the Second Tranche of EIT InnoEnergy’s Investment: a) Received a second tranche of investment from EIT InnoEnergy of €125,000, bringing the EU-backed body’s investment to date to €187,500. b) The intended total investment from EIT InnoEnergy of €250,000 and will help accelerate the Chvaletice Manganese Project’s. Accordingly, an additional 330,647 Shares to EIT InnoEnergy atCAD$0.56 per Share will be issued.


This brings EIT InnoEnergy’s total investment to date to €187,500 (CAD$278,012). The issuance of the 478,027 Shares is not expected to occur until early January 2022 and remains subject to the approval of the TSXV.

Aug. 16 - Files Q3 financial statements and MD&A and provides financial and operational highlights:


Commissioning and initial production of the DP are now targeted for the second quarter of 2022. Work on the Project’s definitive feasibility study and Final EIA continues, with completion of both expected in the first quarter of 2022. Completion of these key elements of the Project could potentially enable environmental permitting in late 2022.


Sept. 4 -Co-develop High-Purity Manganese in Lithium-Ion Battery Cathode Materials with Nano One: Entered into a Joint Development Agreement. Joint activities will focus on developing manganese products expected to be produced by Euro Manganese for use in cathode materials made by Nano One.


Nov. 8 - Provides Chvaletice Manganese Project and Corporate Update:


The Project’s pilot plant was restarted during October to produce small samples of high-purity manganese products for prospective customers. Sample deliveries are expected in the first quarter of 2022.


Work on the Project’s definitive feasibility study is ongoing, with all verification and testing work complete and good progress being made on engineering studies. To date, the study is tracking on schedule and on budget, with approximately 60% of physical progress complete as at the end of September 2021.


Demonstration Plant on track for Q2 2022 start-up: The DP is designed to produce large-scale samples of high-purity manganese products for use in the supply chain qualification process of the Company's products. Approximately 55% of the first year’s production has been allocated to five prospective customers who have signed non-binding (MOUs).


Dec. 20 - Appoints Dr. Matthew James as Chief Executive Officer: Dr. James will succeed Marco Romero, the founder of Euro Manganese and one of its largest shareholders. He will continue as an advisor assisting with the transition to Dr. James and on the generation of potential growth opportunities for the Company, in line with the Board’s strategy.

The Company has also granted stock options to its directors, officers and employees to purchase up to an aggregate of 4,150,000 common shares of the Company. Of these, 1,200,000 have been granted to directors, 900,000 have been granted to officers and 2,050,000 have been granted to employees and consultants. The stock options are exercisable for a term of ten years at an exercise price of C$0.58 per common share. The options will vest one-third on the date of grant, and one-third on each of the first and second anniversaries of the date of grant.


Jan 4 - European Bank for Reconstruction and Development (ERBD) to Invest $8.5 Million in Euro Manganese: The proceeds will increase provide flexibility in financing the Chvaletice Manganese Project in the Czech Republic, including the feasibility study, site preparation and operating costs for the Demonstration Plant, and environmental works including permitting and other activities related to the Final Environmental and Social Impact Assessment.


As part of its due diligence, the EBRD engaged an independent, international natural resources consultancy to conduct a technical and environmental review of the Chvaletice Manganese Project. The EBRD is owned by the European Union, European Investment Bank and 71 countries, including the Czech Republic.

The investment is to via a private placement of 17.8M shares to be issued to EBRD at a price of CAD$0.4775 per share. Upon the closing of the Placement, EBRD will hold approximately 4.5% of the Company’s common shares (on a non-diluted basis). In connection with the Placement, EMN and EBRD will enter into a project support agreement whereby, subject to certain conditions, the EBRD will be allowed participation in future financings to maintain its equity interest.


Jan. 6 - Completes Share Issuances to EIT InnoEnergy: Pursuant to the Project Support Agreement entered into by the Company and EIT InnoEnergy, as announced on February 22, 2021, and to the receipt of two investment tranches aggregating €187,500 (CAD$278,012), the Company has issued 478,027 common shares ("Shares") to EIT InnoEnergy.


Jan. 24 - Complete Buy Back of 1.2% NSR in Chvaletice Manganese Project:


Jan. 31 - Completes Buy Back of 1.2% NSR in Chvaletice Manganese Project: Issued 4,820,109 common shares and paid US$1,8M to purchase the aggregate 1.2% net smelter royalty interest in the Chvaletice Manganese Project.

Further to its announcement of January 24, 2022, the Company issued 4,820,109 Shares at a price of $0.47262 per Share valued at $2,278,080 (US$1,800,000 based on the Bank of Canada’s USD / CAD exchange rate on January 24, 2022) and paid US$1,800,000 to settle the balance owing under the royalty termination agreements dated May 31, 2021.


Feb. 10 - Closed C$8.5 Million Strategic Investment by European Bank for Reconstruction and Development: Via private placement of 17.8M shares to EBRD at CAD$0.4775 cents. Upon closing, EBRD holds4.4% of the EMN.V's shares.


The proceeds will increase flexibility in financing the Chvaletice Manganese Project, including the feasibility study, site preparation and operating costs for the demonstration plant, and environmental works including permitting and other activities related to the Final Environmental and Social Impact Assessment.


In connection with the Placement, EIT InnoEnergy will be issued 0.53M shares at CAD$0.4775 per Share, for total consideration of CAD$254,985, representing a finder’s fee equal to 3% of the gross proceeds of the Placement.

Euro Manganese will host its first quarterly investor call at 1.30 p.m. Pacific Time on Monday, February 14, 2022. CEO Matt James will provide an overview of the Company’s activities, including an operational update on the Chvaletice Manganese Project and upcoming milestones. Mr. James will take questions from investors after the presentation.

Summary


Permitting/License

Mangan Chvaletice s.r.o. (a subsidiary of EMN.V), has been granted an extension of its Chvaletice Exploration Licenses to May 31, 2026. Mangan Chvaletice was also granted a new Preliminary Mining Permit up to May 31, 2026.


Pilot Plant

June 2021, Euro Manganese indicated that it would restart its Pilot Plant with a Q4 2021 target date for sample deliver. However, the Pilot Plant was re-started in October 2021 and deliveries were re-scheduled to Q1 2022.


The pilot plant will be refurbished and restarted to prepare an initial batch of 50 kg of high-purity electrolytic manganese metal and 150 kg of high-purity manganese sulphate monohydrate.


Demonstration Plant (DP)

Initial target date was Q1 2022. In August 2022, it was moved to Q2 2022.


The DP is a 7-times scale up of the successful pilot plant that the Company operated in 2018. It is designed as a locked-cycle, semi-batch, manually operated system of interconnected modules that can be utilized as a circuit or as stand-alone components. The DP is intended to replicate the entire process flowsheet proposed in the Project’s 2019 Preliminary Economic Assessment. It will produce around 32 kg/day of high-purity electrolytic manganese metal ("HPEMM"), that can be converted into approximately 100 kg/day of dry crystalline high-purity manganese sulphate monohydrate ("HPMSM").


The DP will recycle tailings material to produce battery-grade manganese products using the same process proposed for the full-scale commercial plant, targeted for production in late 2024/early 2025.


Partnership

A Joint Development Agreement with Nano One was signed in September 2021. The activities will focus on developing manganese products expected to be produced by Euro Manganese for use in cathode materials made by Nano One.


Appointment

Dr. Matthew James became CEO as of January 4 2022.


European Bank for Reconstruction and Development (ERBD)

An $8.5M investment via Private Placement of 17.8M shares at $0.4775 cents that closed on February 10, 2022.


EIT InnoEnergy

July 2021, a second tranche of investment of €125,000 (330,647 Shares at $0.56 cents) was made for a total of €187,500 to date towards a maximum €250,000. Issuance was completed in January 2022.


Options

June 2021, 0.5M options at $0.59 cents were granted. December 2021, 4.1M shares to director and Officers ($0.58 cents).


Royalties

May 2021, Euro Maganese announced its intent to purchase the 1.2% interest in the Chvaletice Manganese Project for US$4.5M. Based on the 2019 PEA Assumptions this reduces operating expenses by US$91.1M over the Project’s 25-year life. Buyback was completed via issuance of 4.8M shares at $0.47262 ($2.27M) and paid $1.8M in cash in January 2022.



In short

In the past nine months a number of milestones have been achieved.


The extension of Mangan Chvaletice s.r.o's (a subsidiary of EMN.V) exploration licences and preliminary mining permit to FY 2026 affords Euro Manganese the ability to continue to work on advancing the Chvaletice Project.


The restart of the Pilot Plant in October 2021 was another key achievement. It enabled the acceleration of the supply chain qualification process with prospective customers. In addition, the progress in building the Demonstration Plant assists in de-risking the Chvaletice Project towards facilitating potential off-take agreements.


Approximately 55% of the DP’s planned first year production of HPEMM and HPMSM has been allocated to five prospective customers for testing, in the context of their supply chain qualification process.


The Demonstration Plant will recycle tailings material to produce battery-grade manganese products using the same process proposed for the full-scale commercial plant, targeted for production in late 2024/early 2025.


Furthermore, The $8.5M financing from European Bank for Reconstruction and Development (ERBD), as well as, the continued contribution from EIT InnoEnergy outlines the authenticity of the Chvaletice Manganese Project.


In addition, EMN.V was also able to secure a Joint Development Agreement with Nano One.


The manganese will be evaluated by Nano One in the formation of its innovative cathode materials including LNMO (lithium nickel manganese oxide) and nickel rich NMC (lithium nickel manganese cobalt oxide).


This is significant because Nano One, is already working with Volkswagen amongst others.


Despite the progress exhibited during the past nine months, valuation continues to be stagnant. EMN.V has $29M in cash and 401M shares outstanding with a significant portion owned by institutions (45%).


Overall, the upcoming Definitive Feasibility Study (Q1 2022), restart of the Demonstration Plant, and the possibility of initial customer off-takes throughout FY 2022 represents significant potential catalysts.


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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