Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt:
E06) (the "Company" or "EMN") is pleased to announce key
developments during the third fiscal quarter and to date. The
Company has now filed its June 30, 2023 Third Fiscal Quarter
Financial Statements and Management’s Discussion and Analysis. Euro
Manganese reports to a fiscal year-end of September 30.
Key Developments During and Subsequent
to the Quarter
Chvaletice Project, Czech Republic
- Award of
EPCM contract to Wood for development of the Chvaletice Processing
Plant. The Company selected Wood Australia as its
Engineering, Procurement and Construction Management ("EPCM")
partner following a rigorous selection process. The contract has
two phases, with an approval stage gate between each phase. Phase 1
includes Front End Engineering Design ("FEED") and is anticipated
to take approximately 12 months. Phase 2 is the EPCM phase, which
includes detailed design, procurement, construction, and
commissioning. A Final Investment Decision ("FID") is to be made
prior to commencement of Phase 2. Receipt of FID from the Board
requires securing outstanding permits and project finance (debt and
equity).
- Revised
ESIA to be resubmitted, no anticipated effect on timeline to
FID. Work to address the comments received related to
noise abatement are progressing well. The Company anticipates the
issuance of a positive decision on the revised Environmental Social
Impact Assessment ("ESIA") before the end of 2023.
-
Preparation of other key permits is progressing
well. Documentation for the Land Planning Permit is
substantially complete and will be finalised upon receipt of the
conditions in the approved ESIA. The Land Planning Permit will be
submitted on approval of the ESIA. The Construction Permit is a
deliverable of the FEED phase of engineering and is expected to be
submitted in mid-2024.
-
Production of 99.9% pure HPEMM from Chvaletice
Demonstration Plant significantly de-risks the process flow
sheet. External laboratory testing confirmed that the
first sample of high-purity electrolytic manganese metal ("HPEMM")
met the Demonstration Plant target specifications.
-
Production of on-spec high-purity manganese sulphate
monohydrate ("HPMSM") due in the near term. Corrosion
inside the crystallizer due to a manufacturing fault has resulted
in delayed production of on-spec HPMSM material. This issue has
been addressed and production of HPMSM is expected to be
recommenced in the coming weeks. Samples will then be sent to
external labs for assaying.
Offtake Process
- Offtake
funnel remains full with 200,000 tonnes of Chvaletice HPMSM (over
100% of annual production capacity) now under discussion.
Parties are moving through the sales funnel and new offtakers have
entered the process. Several larger potential customers are yet to
provide an allocation of tonnage to the Company; however, they have
expressed an expectation to do so in the near future. The
Company is targeting 80% of production capacity under offtake
contract to support project finance.
Bécancour Facility, Quebec, Canada
- Scoping
Study highlights released for the Bécancour Dissolution
Plant. The Scoping Study delivered strong preliminary
project economics, with a post-tax Net Present Value ("NPV") of
C$190 million using an 8% discount rate, a post-tax Internal Rate
of Return ("IRR") of 26%, and a payback period of approximately 4
years. The economic analysis has a margin of error of -30%/+50% and
was run on an unlevered and constant dollar basis with no inflation
or government grants considered. Initial capital is estimated at
C$110.8 million, including contingencies of C$15.1 million. A key
aspect of the Dissolution Plant is a short build time of 2 years
for engineering/construction. Plant production capacity is
estimated to be 48,500 tonnes per annum ("tpa") of HPMSM, assuming
sufficient supply of HPEMM feedstock. This could meet up to 20% of
projected North American 2027 demand for HPMSM, according to
forecasts by CPM Group. There is no current processing capacity or
production of battery-grade manganese in North America.
- MoU
signed with Manganese Metal Company ("MMC") for supply of
HPEMM. The MoU provides feedstock optionality for the
Bécancour Plant, allowing it to be fed with HPEMM from MMC and/or
with HPEMM from the Company’s Chvaletice Manganese Project ("CMP")
in the Czech Republic. This enables the potential for the Bécancour
Plant to supply the North American market as early as mid-2026,
thus bringing forward cash flows for the Company.
- WSP
selected to complete Bécancour Dissolution Plant Feasibility
Study. The Feasibility Study will further define project
design, costs, economics, and customer off-take opportunities. The
Study is expected to be complete in mid-2024, subject to financing.
Permitting is expected to advance in parallel with the Study to
facilitate the path to production.
-
Cooperation Agreement signed with the Grand Conseil de la
Nation Waban-Aki ("W8banaki"). The Agreement defines how
the Company and the W8banaki intend to communicate openly and
regularly, and to work together for the mutually acceptable
development of the Bécancour Project, especially during the
evaluation and planning phases.
Financial Position
- Cash and
cash equivalents of approximately C$10.9 million as at end of
fiscal Q3 (June 30, 2023); compared to $13.8 million at
fiscal Q2 (March 31, 2023). The reduction in cash position is
mainly attributable to: expenses related to project advancement,
including award of the EPCM contract; commissioning of the
Demonstration Plant; certain land rental payments; amendments to
the ESIA; and administrative expenses related to project financing
efforts and the corporate office. Additional expenses were incurred
for site due diligence and completion of the Bécancour Plant
Scoping Study evaluating the construction and operation of a
Dissolution Plant at the Port of Bécancour in Québec.
-
Sufficient funding for delivery of near-term project
milestones including advancing permitting for the
Chvaletice Project, completing commissioning of the Demonstration
Plant and its initial operation, and for general &
administration expenses for the next 12 months. Additional funding
will be required for execution of the EPCM services for the
Project, certain scheduled payments for land acquisitions, future
operation of the Demonstration Plant, as well as construction of
future infrastructure and facilities for the Chvaletice Project and
to advance the Company's North American strategy, including the
Bécancour Plant Feasibility Study.
Dr. Matthew James, President & CEO of Euro Manganese,
commented:
“We continued to advance the Chvaletice
Manganese Project during the third fiscal quarter and to date.
Production of on-spec high-purity manganese metal from the
Chvaletice Demonstration plant was a significant milestone.
Additionally, the appointment of Wood as our EPCM partner signals
our commitment to building a world-class facility in the Czech
Republic to produce high-purity manganese, an essential component
in lithium-ion batteries for electric vehicles. We remain focused
on producing on-spec high-purity manganese sulphate from our onsite
Demonstration Plant, which would further de-risk our process
flowsheet and demonstrate our capacity to produce battery-grade
manganese products at scale.
Developments at our Bécancour Project subsequent
to the quarter make this opportunity increasingly attractive for
the Company and its stakeholders. The positive Scoping Study
delivered strong preliminary project economics for modest initial
capital and estimated a short, 2-year build time. We now intend to
proceed with a Feasibility Study to further refine Plant design,
costs, and economics. Our MoU with MMC provides us with feedstock
flexibility and enables us to potentially operate Bécancour as a
stand-alone project. More importantly, it outlines a path to bring
Company production and cash-flow forward by at least a year, in
advance of our Chvaletice Manganese Project in the Czech Republic.
I am very excited about the potential significant value that
Bécancour could deliver for our stakeholders.”
Fiscal Q3 Conference Call
Details
Euro Manganese will host two separate conference
calls to serve stakeholders in their respective time zones. The
content of both calls will be the same. Replays and transcripts of
both calls will be available on Euro Manganese’s website:
www.mn25.ca
CALL #1 – For North American and UK/European
Audiences |
|
North America |
UK/Europe |
Date |
Monday, September 11, 2023 |
Monday, September 11, 2023 |
Time |
8:30am PDT | 11:30am EDT |
4:30pm BST | 5:30pm CEST |
Registration: |
https://us06web.zoom.us/webinar/register/WN_d_J7uZPBQxqfMjpuq2P1eg |
CALL #2 – For Australian and UK/European
Audiences |
|
Australia |
UK/Europe |
Date |
Tuesday, September 12, 2023 |
Tuesday, September 12, 2023 |
Time |
4:00pm AEST | 2:00pm AWST |
7:00am BST | 8:00am CEST |
Registration: |
https://us06web.zoom.us/webinar/register/WN_udfkAbo5SgGHG5cdb2nqpg |
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.
Qualified Person(s) Statement for Chvaletice Manganese
Project
The technical information regarding the
Chvaletice Manganese Project in this news release was prepared
under the supervision of Ms. Andrea Zaradic, P. Eng., a Qualified
Person under National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101"). Ms. Zaradic has reviewed and
approved the information regarding production of HPEMM from the
Demonstration Plant and production of on-spec HPMSM and has
consented to the inclusion of the matters in this news release
based on the information in the form and context in which it
appears.
Authorized for release by the CEO of Euro
Manganese Inc.
Neither 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.
Inquiries
Dr. Matthew JamesPresident & CEO+44 (0)747
229 6688
Louise BurgessSenior Director, Investor
Relations & Communications+1 (604) 312-7546lburgess@mn25.ca
Company Address: #709 -700 West Pender St.,
Vancouver, British Columbia, Canada, V6C
1G8Website: www.mn25.ca
Forward-Looking
Statements
Certain statements in this news release
constitute “forward-looking statements” or “forward-looking
information” within the meaning of applicable securities laws. Such
statements and information involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company, its Chvaletice mineral
project, its proposed Bécancour Plant or industry results, to be
materially different from any future results, performance or
achievements expressed or implied 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”, “plan”, “anticipate”, “estimate”, “scheduled”,
“forecast”, “predict” and other similar terminology, or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved.
Regarding the Chvaletice Project,
forward-looking information or statements include, but are not
limited to, timing for completion of Phase One of the EPCM
contract, timing and ability of the Company to make a final
investment decision, ability of the Company to obtain required
permits, the acceptability of the revised ESIA documentation by the
Czech Ministry of Environment and the anticipated timing of various
regulatory approvals, the ability of the Company to produce on-spec
HPMSM, the ability of the Company to progress potential customers
through the sales funnel and enter into binding offtake agreements
for its product, and the ability of the Company to obtain financing
on favorable terms or at all.
Regarding the Bécancour Plant, forward-looking
statements include, but are not limited to, results of the Scoping
Study including estimates of internal rates of return, net present
values, and estimates of costs, statements regarding the timing for
completion of the Bécancour feasibility study, the Company’s
ability to reach a definitive agreement with MMC to supply
feedstock, the Company’s estimated engineering and construction
timelines to build the Bécancour Plant, the technical capability of
the Bécancour Plant, the Company’s ability to operate the Bécancour
Plant and produce both HPMSS and HPMSM with any associated cash
flow, the Company’s ability to meet North American demand, and
continuing successful cooperation with the W8banaki Nation.
Readers are cautioned not to place undue
reliance on forward-looking information or statements.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or
events to differ materially from current expectations include,
among other things for the Chvaletice Project: unexpected results
or unsuccessful completion of the various stages of the EPCM
contract; the ability to develop adequate processing capacity; the
availability of equipment, facilities, and suppliers necessary to
complete development; increases in various operating costs; risks
and uncertainties related to the ability to obtain, amend, or
maintain necessary licenses, or permits; risks related to
acquisition of surface rights; risks and uncertainties related to
timing and amount of production and total costs of production; the
potential for unknown or unexpected events to cause contractual
conditions to not be satisfied; the price of HPEMM and HPMSM; delay
or inability to get the ESIA approved by relevant authorities; and
changes in project parameters as plans continue to be refined. For
the Bécancour Plant factors include, among other things:
assumptions in scoping study not proving accurate over time and
negatively affecting results, an inability to obtain financing,
unanticipated operational difficulties including failure of the
Bécancour Plant, cost escalation for reagents, labour, power and
other cost increases, inability to secure key reagents, a delay or
inability to obtain or maintain necessary licenses or permits; the
potential for unknown or unexpected events to cause contractual
conditions to not be satisfied; unexpected results from the
feasibility study; and risks and uncertainties related to limited
feedstock supply
options.
Additional factors that could cause results or
events to differ materially from current expectations include risks
related to global epidemics or pandemics and other health crises;
availability and productivity of skilled labour; risks and
uncertainties related to interruptions in production; unforeseen
technological and engineering problems; the adequacy of
infrastructure; risks related to working conditions, accidents or
labour disputes; social unrest or war; the possibility that future
results will not be consistent with the Company's expectations;
increase in competition, developments in EV battery markets and
chemistries; risks related to fluctuations in currency exchange
rates, changes in laws or regulations; and regulation by various
governmental agencies and changes or deterioration in general
economic conditions. For a further discussion of risks relevant to
The Company, see "Risk Factors" in the Company's annual information
form for the year ended September 30, 2022, available on the
Company's SEDAR profile at www.sedar.com.
All forward-looking statements are made based on
the Company's current beliefs as well as various assumptions made
by the Company and information currently available to the Company.
For the Chvaletice Project, these assumptions include, among
others: the presence of and continuity of manganese at estimated
grades; the ability of the Company to obtain all necessary land
access rights and permits; the availability of personnel,
machinery, and equipment at estimated prices and within estimated
delivery times, and the successful completion of the various stages
of the EPCM contract. For the Bécancour Plant, assumptions include
demand for products develops as anticipated, that operating and
capital plans will not be disrupted by issues like lack of
availability of personnel, machinery, equipment, there are no
material variations in costs, successful completion and positive
outcome of the feasibility study, and that the Company will obtain
required environmental and other permits. In addition, general
assumptions include currency exchange rates; manganese sales
prices; growth in the manganese market; appropriate discount rates
applied to the cash flows in economic analyses; tax rates and
royalty rates applicable to the proposed operations; the
availability of acceptable financing; anticipated timelines for
community consultations and the impact of those consultations on
the regulatory approval process, and favorable regulatory
environment.
Although the forward-looking statements
contained in this news release are based upon what management of
the Company believes are 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 news release and are expressly
qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any
obligation to update or revise the forward-looking statements
contained herein to reflect events or circumstances occurring after
the date of this news release.
Grafico Azioni Euro Manganese (TSXV:EMN)
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