The Euro Manganese Inc CDI [ASX:EMN] share price is down 2.3%, trading at 66 cents at time of writing after announcing a private placement.
Euro Manganese’s main focus is to develop their wholly-owned Chvaletice Manganese Project in the Czech Republic. The company is looking to become a producer of ultra-high purity manganese products in Europe for the lithium-ion battery industry as well as other uses like aluminum alloys.
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What’s the offer?
Euro Manganese is looking for $30 million to advance their Chvaletice Manganese Project.
The company is offering 50 million CHESS Depositary Interests (CDIs), with each CDI representing a share at 60 cents each. EMN says the offering had ‘strong support’ from several institutional shareholders.
The offering is going in two tranches. Tranche one will issue 41.7 million shares for $25 million. Tranche two will issue 8.33 million shares for another five million. Euro Manganese say they have scheduled a special meeting in early May for shareholders to approve the second tranche.
Euro Manganese says they will use the money to complete the installation and commissioning of their high-purity manganese demonstration plant, to cover their costs of the plant’s operations for the first year, finish up the project’s permitting and feasibility study, scheduled land acquisition payment and other general corporate purposes.
EVs rolling out at a fast pace
It’s not strange that the company is looking to accelerate their project as electric vehicles are starting to roll out at a quick pace.
In their first Power Day last week, German Volkswagen Group released last week their technology roadmap for batteries. The plan includes building six gigafactories in Europe.
As Marco Romero, President and CEO of the company 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 clearl yin the right place at the right time.’
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Best,
Selva Freigedo
