VANCOUVER, British Columbia, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (“Euro Manganese” or the "Company") announced today that it has amended the US$100 million funding package (the “Funding Package”) with OMRF (BK) LLC ("Orion"), which is managed by the Orion Resource Partners. The Funding Package, originally announced on November 28, 2023, supports the development of the Chvaletice Manganese Project (the "Project") in the Czech Republic, and consists of a US$50 million Convertible Loan Royalty Agreement (the "CLRA"), of which US$20 million has been advanced to the Company, and a US$50 million royalty on Project revenues (the “Royalty Financing”), subject to the Company meeting certain milestones related to the development of the Project.
Highlights of the Amendment to the Funding Package
- The current CLRA requires the Company pay cash interest to Orion. Based on the amendment to the CLRA, interest amounts accruing with effect from January 1, 2025 will be deferred and added to the principal balance of the convertible loan, conserving US$2.8 million per annum of cash for the advancement of the Project. The CLRA amendment interest rate is 14.00%.
- The dates for certain milestone obligations under the amendments to the CLRA and Royalty Agreement (the "CLRA and Royalty Amendment") have been extended to allow for advancement of the Project.
- Euro Manganese has been granted the right to repay the convertible loan at par at any time prior to conversion, including all accrued and unpaid interest, and may cancel the second tranche of the CLRA without penalty.
- Euro Manganese has been granted the right to terminate the Royalty Financing at any time prior to the satisfaction of the conditions precedent for the Royalty Financing for a fee of US$1 million, provided that the outstanding convertible loan amounts under the CLRA (and all accrued and unpaid interest) have been repaid in full at such time.
- Euro Manganese will, subject to TSX Venture Exchange approval, and in the event certain conditions precedent are met with respect to future equity fundraising activities, issue warrants to purchase common shares of the Company to Orion.
Further details are available in Table 1 of this news release. All other material terms and conditions of the CLRA and Royalty Agreement, remain unchanged. Copies of the CLRA and Royalty Agreement are available on SEDAR+ and a copy of the CLRA and Royalty Amendment will be filed under the Company's profile on SEDAR+.
Martina Blahova, Interim CEO of Euro Manganese, commented:
"We have maintained a strong and collaborative relationship with Orion and are pleased to have amended the Funding Package, accommodating the more gradual pace of development within the EV industry. Our team remains focused on progressing offtake discussions with potential customers and strategic partners and managing our resources for the next phase of growth."
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 Manganese 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.
About Orion Resource Partners
The Orion Resource Partners is an $8 billion global asset management firm that specializes in institutional investment strategies in precious and energy transition metals and minerals. Headquartered in NYC and with offices in Denver, London, and Sydney, The Orion Resource Partners includes a team of 80 professionals with backgrounds in metals finance, physical metals logistics and sales, and in-house technical professionals responsible for risk assessment and portfolio management.
