Raises A$25M Towards Chvaletice Development
Euro Manganese Inc. (TSXV / ASX: EMN) has successfully closed the first tranche of an A$30 million total private placement, the first of three investments by EIT InnoEnergy, an extension to its eligibility timeline on Czech investment incentives, and a grant of stock options.
The company has closed the first tranche of the Offering at a price of for gross proceeds of AUD$25 million (approximately CAD$24.2 million).
The second tranche of the Offering is expected to close in May 2021, subject to and following approval by the company’s shareholders.
Net proceeds of the Offering will be used by the Company to advance its Chvaletice Manganese Project in the Czech Republic. Specifically, proceeds will be used for completing the installation and commissioning of the Company’s high-purity manganese demonstration plant, initial year of operating costs of the Demonstration Plant, completing the Project’s permitting and feasibility study, for certain scheduled land acquisition payments and for general corporate purposes.
Canaccord Genuity (Australia) Limited is acting as lead manager and bookrunner to the Offering, with Bacchus Capital Advisers Limited acting as financial adviser to the company.
Pursuant to the terms of the Project Support Agreement entered into by the company and EIT InnoEnergy, and announced on February 22, 2021, the company has received the first of three investments from EIT InnoEnergy, such instalments having an aggregate value of €250,000. The funds will be used to support ongoing work on the Project’s definitive feasibility study and the commissioning of the Demonstration Plant, which is intended to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.
EIT InnoEnergy is a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology. EIT leads the industrial stream of the European Battery Alliance, an initiative launched by The European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe. The support of EIT is intended to help accelerate the Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.
The first investment made by EIT of €62,500 (approximately C$92,850) was advanced to the Company on March 24, 2021.
The company also reported that its eligibility timeline for certain investment incentives in the Czech Republic has been extended by two years. As originally announced on March 30, 2020, the Company received approval from the Czech Ministry of Industry and Trade for investment incentives on the Project in the form of corporate income tax credits. The credits are to be applied toward Czech corporate income taxes payable on future earnings generated by the Project. Based on eligible Czech-based assets acquired of approximately CZK2.4 billion.
