Next Investors logo grey

EMN now has $30M to install, commission and operate its Demonstration Plant


Published 22-MAR-2021 12:00 P.M.


4 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

EuroManganese (ASX:EMN) has today announced an oversubscribed private placement of AU$30 million (CAD$29 million), with strong institutional participation.

Money raised will be used to further advance its Chvaletice Manganese Project in the Czech Republic.

Specifically, proceeds will be used for completing the installation and commissioning of EMN’s high-purity manganese demonstration plant.

EMN now has the funds required to install, commission and operate the Demonstration Plant and to finalise its Definitive Feasibility Study and Final Environmental Impact Assessment.

This will all take place during the next 12 months.

The offering is intended to close in two tranches. Tranche One will be for $25M and is expected to close on or about 30 March, 2021. Tranche Two for $5M is expected to close as soon as practicable after receipt of shareholder approval.

The second tranche will be used to introduce two new institutional investors with a strong positive view on ESG projects and the market opportunity for high-purity manganese in Europe.

Last week, that opportunity grew larger following Volskwagen’s Power Day presentation, in which the car manufacturing giant stated that it wants to standardise on one type of battery cell, and that this “volume cell” will contain “high manganese content”.

Volkswagen says that this “volume cell” is going to make up the majority of its production.

Given its project is located in Eastern Europe in the Czech Republic, EMN could meet Volkswagen’s required sustainability and local supply needs in future.

VW also announced that its fourth EV factory may possibly be built in the Czech Republic.

Read: Power Day Launches Volkswagen’s EU Electric Vehicle Future

EMN is already in discussions with several potential project partners and customers who are attracted to the unique characteristics of the Chvaletice Manganese Project.

Certainly, the exceptional environmental footprint of the Chvaletice Manganese Project would be attractive to a company such as VW. This footprint has already had a desired effect in attracting several project partners and customers to the table for ongoing discussions.

Notably, EMN stands to become the only primary producer of battery grade manganese products in Europe, with the potential to provide up to 50% of projected 2025 European demand for these products, and 28% of its anticipated 2030 requirements.

Marco Romero, President and CEO of EMN believes the latest fundraising activity will assist EMN in advancing these discussions

“We are very pleased to see such strong and high-quality investor interest in this equity offering,” Romero said.

“We now have the funds required to install, commission and operate our Demonstration Plant and to finalise our Definitive Feasibility Study and Final Environmental Impact Assessment during the next 12 months.

“This financing will allow us to complete all site and technical work required for a final investment decision expected in 2022.

“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 clearly in the right place at the right time.”

Read: EMN Joins an Exclusive Club: EIT InnoEnergy has Entered the Game

In short, the European Union government backed entity EIT InnoEnergy will invest €250,000 (AU$384) to fast track EMN’s project and also help EMN secure up to €362M to develop their project.

EIT InnoEnergy is the innovation engine for sustainable energy across the European Union, including accelerating innovation and commercialisation along the entire battery value chain.

Diego Pavia, CEO of EIT InnoEnergy has this to say about their investment and support of EMN: “Euro Manganese’s proposed development is the only sizeable and economically recoverable manganese resource on the European continent. It represents a unique opportunity for Europe to secure a measure of self-sufficiency in manganese, which is a critical battery raw material.”

About the Chvaletice Manganese Project

The Chvaletice Manganese Project entails reprocessing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic.

EMN’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, as well as other high-technology applications.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.