Euro Manganese announces its financial results for the second quarter of 2022
VANCOUVER, British Columbia, May 15, 2022 (GLOBE NEWSWIRE) — Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (the “Company” or “REM“) is pleased to report key developments during the second quarter of 2022 and to date. The Company has now filed its second quarter financial statements and MD&A (“Management report”).
- First demonstration plant shipment underway. The first shipment was shipped on April 30, 2022, and the last shipment is expected to ship in the coming weeks. Both shipments are made by sea freight from China, a change from rail, due to the Russian-Ukrainian conflict. The delivery of the first shipment is scheduled on site in June. Assembly of the demonstration plant modules will begin upon delivery. Completion of commissioning and start of production from the demonstration plant is scheduled for September. The demonstration plant will be used for customer supply chain qualification of Euro Manganese’s high purity manganese products.
- Watch a video of the cold commissioning of the demonstration plant.
- See photos of demonstration plant testing and shipping.
- Ms. Hanna Schweitz appointed to the Board of Directors. Ms. Schweitz brings significant experience in the European EV battery metals and materials business, particularly in raw material sourcing for Northvolt and WMC Energy. His appointment on April 25, 2022 enriches the collective skills and experience of the Board.
- Approval of the terms of the land access agreement by the Municipality of Chvaletice. The terms include leasing the land to the Company until the earliest of 40 years or until the land is reclaimed. The land lease agreement is expected to close in the second quarter of 2022 and grants the Company access to approximately 19% of the total land area required for the project and approximately 15% of the total tailings area. The Company is progressing in negotiations on land access agreements for the remaining surface rights.
- The majority of the land on which the project is located has been rezoned for mining use. The Municipality of Trnavka, on which approximately 85% of the project tailings are located, formally approved the rezoning of these lands for mining purposes in March 2022. The rezoning demonstrates the continued support of the Municipality of Trnavka. The remaining area of the underlying land falls under the authority of the Municipality of Chvaletice and the Company anticipates that the rezoning of the Chvaletice land underlying the Project tailings deposit will be formally approved for mining by end of 2022.
- Completion of a private placement with the European Bank for Reconstruction and Development. On February 10, 2022, the Company completed a private placement of 17,800,000 common shares with the European Bank for Reconstruction and Development (“EBRD”) at a price of $0.4775 per share for gross proceeds of $8,499. $500 (the “Investment”). The proceeds from the placement increase the Company’s flexibility in financing its Chvaletice Manganese project.
- Balance due under royalty termination agreements settled. On January 31, 2022, the Company issued 4,820,109 common shares at a price of $0.47262 per share valued at $2,278,080 (US$1.8 million) and paid US$1.8 million to settle the balance due under royalty termination agreements dated May 31, 2021. This eliminates $91.1 million in expenditures over the 25-year life of the Chvaletice Manganese Project, reducing operating costs by 3, US$40 per ton of mill feed and increasing the project’s after-tax NPV by US$25.3 million (approximately 4%) based on the preliminary 2019 Economic Assessment (“PEA”) forecast and in using the 10% PEA discount rate.
Dr. Matthew James, President and CEO of Euro Manganese, said:
“The second quarter of 2022 was extremely productive for Euro Manganese despite some challenges caused by global events. In addition, the support we have received from the EBRD and local municipalities demonstrates the importance of carrying out the Chvaletice Manganese project.
We have added a number of qualified people to our team in the Czech Republic in preparation for the arrival of our demonstration plant and we look forward to leveraging the skills and experience of our newest board member, Hanna Schweitz, as we continue to engage with customers seeking battery raw materials.
Our short-term goal remains delivery of product samples from our pilot plant, followed by larger samples from the demonstration plant once production begins. This will allow customers to continue or initiate their supply chain qualification. Other milestones planned for this year include the completion of our feasibility study, the acquisition of remaining land access rights and the submission of our final environmental and social impact assessment. Achieving these goals and securing off-take agreements with potential customers, followed by the engagement of strategic and financial partners, will help us create value for our stakeholders. »
Q2 2022 Operational Update Conference Call Details
Euro Manganese will host its Q2 2022 Operational Update Conference Call on Monday, May 16, 2022 at 3:30 p.m. PT (6:30 p.m. ET) (Tuesday, May 17, 2022 at 8:30 a.m. AEST). CEO Matt James and CFO Martina Blahova will provide an operational update on the project and its next steps. The call will also be webcast: https://edge.media-server.com/mmc/p/8avtssir
|Date||Monday, May 16, 2022||Monday, May 16, 2022||Tuesday, May 17, 2022|
|Weather||3:30 p.m. PT | 6:30 p.m. ET||11.30pm BST||6:30 a.m. AWST | 8:30 a.m. AEST|
Conference ID: 2780906
|+1 (478) 219-0702
Conference ID: 2780906
Conference ID: 2780906
About Euro Manganese Inc.
Euro Manganese Inc. is a battery materials company that aims to be a leading, competitive and environmentally responsible producer of high purity manganese for the electric vehicle (EV) industry and other high technology applications. The Company is advancing the development of the Chvaletice Manganese project in the Czech Republic, which is a unique waste recovery and remediation opportunity involving the reprocessing of old tailings from a disused mine. The Chvaletice project is the only significant manganese resource in the European Union, strategically positioning the company to supply battery supply chains with critical raw materials to support the global transition to a circular, low-carbon economy.
Authorized for publication by the CEO of Euro Manganese Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the ASX accepts responsibility for the adequacy or accuracy of this release. .
Dr Matthew James
President and CEO
+44 (0)747 229 6688
Senior Director Investor Relations and Communications
+1 (604) 312-7546
Company address: #709 -700 West Pender St., Vancouver, British Columbia, Canada, V6C 1G8
Certain statements contained in this press release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. These statements and information involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company, its projects or the results of the industry to be materially different from the results , expressed or implied future performance or achievement. by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, ” plans”, “anticipates”, “estimates”. ”, “planned”, “expect”, “predict” and other similar terms, or indicate that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be reached. Such forward-looking information or statements relate to future events or future performance regarding the Company and its business and operations, which include, but are not limited to: the rezoning of the Chvaletice lands underlying the Project tailings; the conclusion of agreements formalizing the Chvaletice land lease agreements; the Company’s ability to secure remaining land rights; completion and timing of the definitive feasibility study; timing, delivery installation and operation of the demonstration plant; the Company’s ability to negotiate off-take agreements with potential customers; and the Company’s ability to finance the large-scale commercial development of the Project. Further, it should be noted that no production decision has been made with respect to the project and that such a decision will only be made following the completion of a positive feasibility study, permits and funding has been secured.
Readers are cautioned not to place undue reliance on any forward-looking information or statements. Forward-looking statements and information involve significant risks and uncertainties, should not be construed as guarantees of future performance or results, and will not necessarily be accurate indicators of whether or not those results will be achieved. A number of factors could cause actual results to differ materially from results discussed in any forward-looking statements or information, including, but not limited to, factors discussed under “Risk Opinions” and elsewhere in the report. management of the Company, as well as the inability to obtain timely regulatory approvals; the possibility that unknown or unforeseen events could lead to breaches of contractual terms; unexpected changes in laws, rules or regulations, or their enforcement by competent authorities; the failure of parties to contracts with the Company to perform as agreed; social or labor unrest; changes in commodity prices; and the failure of exploration programs or studies to produce anticipated results or results that would justify and support continued exploration, studies, development or mining.
Although the forward-looking statements contained in this press release are based on what management of the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking statements contained herein to reflect events or circumstances that occur after the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements due to the factors set forth in the “Risk Opinions” section and elsewhere in the Company’s MD&A for the fiscal year ended September 30, 2021 and its annual information form. .