Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) achieved several project milestones during the September-December 2022 quarter at its Chvaletice Manganese Project in the Czech Republic.
The commissioning of the demonstration plant started in November 2022 and is advancing well with on-spec samples on track for calendar Q1 2023.
Deliveries of bulk samples to customers are expected to start in early calendar Q2 2023.
Euro Manganese also recently signed an offtake term sheet with French company Verkor, a low-carbon battery manufacturer, for the sale of high-purity manganese sulphate monohydrate (HPMSM) from the Chvaletice Manganese Project.
Concentrate and tailings tanks and filter presses at demonstration plant.
Euro Manganese president and CEO Dr. Matthew James commented:
“The announcement of an offtake term sheet with Verkor was an excellent start to 2023 and we look forward to building on that momentum and establishing commercial offtake agreements as we progress our discussions with interested parties across the battery value chain.”
Next steps
Euro Manganese had cash of ~C$18.3 million as at end of fiscal Q1 (December 31, 2022) which is sufficient to complete the environmental studies, permitting, the commissioning of the Chvaletice demonstration plant and its operation for one year.
The following are the company's short-term priorities:
- Commissioning and operating the demonstration plant to allow the company to produce bulk, multi-tonne finished product samples for prospective customers' supply chain qualification;
- rezoning of the remaining land area underlying the tailings for mining use, which the company anticipates being approved by Chvaletice by mid-calendar 2023;
- continuing discussions and negotiations with potential customers to enter into offtake contracts, as well as strategic and financial partners and government agencies, including those related to funding the development of the project;
- negotiating and completing the acquisition or access to the remaining land rights;
- awarding the EPCM contract for the project;
- developing an optimum financing structure for the Project, which is dependent upon the above milestones being achieved; and
- completing the scoping study to evaluate the site at Bécancour, Québec, for potential production of high-purity manganese products in Canada for the North American EV market.
James added: “The filing of the final Environmental and Social Impact Assessment in late 2022 is a key step in project permitting and the publication of our inaugural Sustainability Report is a testament to our commitment of being a leading and environmentally responsible producer of high-purity manganese.”
Once permitted and offtake agreements have been entered into with the company’s prospective customers, and the remaining land access rights have been acquired, Euro Manganese intends to secure financing in order to commence construction of the full-scale commercial Chvaletice process plant and related infrastructure.