VANCOUVER - Oct. 30, 2023 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce that it has signed a Lease Agreement (the "Agreement") with CEZ a.s. ("CEZ") for access to land owned by CEZ that is required for the development of the Chvaletice Manganese Project (the "Project").
Highlights
Land access to approximately 60% of the Proven + Probable manganese Reserves in the Chvaletice tailings area secured via the Lease Agreement with CEZ.
- The Lease Agreement rent is based on a revenue royalty. The royalty mechanism allows anticipated project finance debt covenants to be met.
- Together with previously announced land access agreements, the Company has now secured access to approximately 85% of the total Reserves of the Project.
Euro Manganese and CEZ (the "Parties"), have signed a definitive Lease Agreement granting the Company access to CEZ-owned land in the historic Chvaletice tailings area. Approximately 60% of the Project’s 27 million tonne Proven + Probable manganese Reserves sit upon land owned by CEZ. The Agreement also includes land required for mining infrastructure and tailings transportation.
Land access will be granted in return for a royalty on gross sales from the Project. During the seven-year project finance debt period (the "Debt Period"), the royalty will operate on a sliding scale from 0.2% to 1.8%, dependent on the average prices received for the Project’s high-purity manganese products. This sliding scale royalty is designed to ensure anticipated project finance debt covenants are met. Post the Debt Period, the royalty will be 1.8% of gross sales from the Project.
The Company now has access to approximately 85% of the total Proven + Probable manganese Reserves required for the Project. As previously announced, the Company has secured all land required for the commercial plant site.
Dr. Matthew James, President & CEO of Euro Manganese, commented: “We are very pleased to work together with CEZ to realise this nationally important, strategic raw material project within the Czech Republic. High-purity manganese, an essential component in most lithium-ion-batteries, will play a critical role in the energy transition within Europe. As the only manganese resource within the EU, the Project will create skilled jobs in the region, stimulate the local economy and generate taxes and revenues for the Czech Government. The Company looks forward to continuing the positive relationship established with CEZ into the future.”
About Euro Manganese
Euro Manganese is a battery materials company focused on becoming a leading producer of high-purity manganese for the electric vehicle industry. The Company is advancing development of the Chvaletice Manganese Project in the Czech Republic and exploring an early-stage opportunity to produce battery-grade manganese products in Bécancour, Québec.
The Chvaletice Project is a unique waste-to-value recycling and remediation opportunity involving reprocessing old tailings from a decommissioned mine. It is also the only sizable resource of manganese in the European Union, strategically positioning the Company to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.
Euro Manganese is dual-listed on the TSXV and the ASX, and is also traded on the OTCQX.
About CEZ
CEZ is one of the largest companies in the Czech Republic and a leading energy group operating in Western and Central Europe. CEZ Group has committed to set an example and make the energy sector sustainable, more environmentally friendly, and conscious in regard to our planet. In its business, CEZ Group follows strict ethical standards, including taking a responsible approach to its employees, society, and the environment. A priority for CEZ is greater diversity, closer cooperation with communities, and an approach to customers that is as accommodating as possible, offering them the best technological and energy-efficient solutions.
The foundation of power generation at CEZ Group are emission-free sources. The CEZ strategy named Clean Energy for Tomorrow is based on ambitious decarbonisation, development of nuclear energy, and a significant increase in the number of renewable sources of energy that we build for our customers’ needs. Recently, CEZ announced that it would move forward its climate-neutrality commitment by ten years, to 2040.
Stifel Nicolaus Europe Limited acted as financial advisor to the Company and continues as the exclusive project finance advisor for the Chvaletice Project.
Authorized for release by the CEO of Euro Manganese Inc.
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