VANCOUVER, British Columbia, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQB: EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce it has entered into an offtake term sheet dated September 6, 2024 (the "Term Sheet") with FeMoCat Ltd ("FeMoCat"), for the sale of high-purity manganese sulphate and a process by-product, magnesium carbonate, from the Company’s Chvaletice Manganese Project ("Chvaletice" or the "Project") in the Czech Republic.
Highlights
- FeMoCat is an established industrial catalyst manufacturer, with a plant at Pardubice in the Czech Republic, less than 1 hour’s drive from the Chvaletice Manganese Project.
- Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate ("HPMSM") production and a significant tonnage of the magnesium carbonate produced as a by-product.
- FeMoCat will use these products for its catalysts and Synthetic Hydrotalcites production in Pardubice.
- Pricing in the Term Sheet is designed to meet the Project’s debt finance banking covenants.
- The Company and FeMoCat intend to enter an offtake agreement, in which the pricing mechanism and tonnages will become binding.
- The Term Sheet demonstrates the value of producing high purity manganese sulphate with market leading ESG credentials at Chvaletice and the ability to meet the needs of a larger and more diverse customer base.
Headquartered in Dublin, Ireland, and with plants in the Czech Republic and China, FeMoCat is a global provider of catalysts for the manufacturing of commodity organic chemicals, including Formaldehyde, Aniline and Volatile Organic Compounds (VOC). In addition to manufacturing catalysts, FeMoCat also undertakes recycling of used catalysts and provides tolling services for other catalyst companies and is an advocate for Green Chemistry, seeking to reduce, eliminate, or prevent the generation of hazardous substances in the design, manufacture and application of its catalysts.
Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate ("HPMSM") production. Magnesium carbonate is a by-product produced at Chvaletice from the purification of HPMSM, and a significant tonnage of magnesium carbonate offtake is included in the Term Sheet.
Deliveries are to commence from first production, ramping up with the Project’s production capacity, for an initial term of seven years with potential for renewals. The commencement of the initial term will be subject to successful qualification of the Company’s HPMSM and magnesium carbonate by FeMoCat. The qualification process shall commence with samples from the Project’s Demonstration Plant.
Pricing for the HPMSM will be on a take or pay basis, based on an index-adjusted western benchmark price. The western benchmark price represents HPMSM with the following attributes: high quality, secure, traceable, western supply source, and market leading ESG (Environment, Sustainability and Governance) credentials, including a low CO2 footprint.
Pricing for the magnesium carbonate by-product will reflect current market prices, European origin and the same leading ESG credentials and will be linked to an appropriate magnesium index.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
“The demand for Euro Manganese’s high-purity products from the Chvaletice Project continues to accelerate with companies recognising the impending deficit and securing their requirements via an offtake Term Sheet. The fact that FeMoCat requires locally sourced products for their existing operations in Pardubice, and potential for increased tonnages as they evaluate new opportunities, demonstrates the value of having a resource in the heart of Europe. Furthermore, the ability to provide FeMoCat with a valuable magnesium carbonate feedstock, from one of the Project’s by-products, underscores both companies commitments to maximising process efficiency and circularity. We look forward to supplying FeMoCat with fully traceable, responsibly produced products and are proud to be partnering with a company who shares our ambition of seeking to reduce or eliminate the use or generation of hazardous substances in their processes and is focussing on reducing emissions, improving energy efficiency and recycling products, which is at the core of our values.”
Tommy Heino, President & CEO of FeMoCat said:
“This Off-Take secures raw materials for FeMoCat’s expansion at Semtinzone/Rybitvi in Pardubice, for our catalysts and Synthetic Hydrotalcite production, from a local source being only 20 km from Euro Manganese’s plant in Chvaletice. Synthetic Hydrotalcites can be used for multiple downstream applications, and we foresee a 4,000 t/y of production. FeMoCat will also provide the products from Euro Manganese to FeMoCat’s partners and service clients. We look forward to a long lasting and mutually beneficial relationship with Euro Manganese and its great team.”
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 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.
