Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) is to complete the buy-back of a 1.2% net smelter royalty (NSR) in its Chvaletice Manganese Project in the Czech Republic, settling the balance of outstanding amounts due under royalty termination agreements.
The royalty buyback includes payment of US$1.8 million in cash and the issue of 4,820,109 common shares valued at C$2,278,080 (US$1.8 million).
In May last year, the company agreed to purchase the NSR interest from three arm’s-length parties for aggregate consideration of US$4.5 million, of which US$900,000 was paid on signing of the royalty termination agreements.
The buy back will be completed on or before January 31. The share consideration is subject to approval of the TSX Venture Exchange (TSXV).
Under Canadian securities law, the shares will be subject to a four month and one day statutory hold period.
About Euro Manganese
Euro Manganese is a battery materials company whose principal focus is advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest.
The company’s vision for the project is to reprocess a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic.
Euro Manganese aims to become a leading, competitive and environmentally superior primary producer of ultra-high-purity manganese products in the heart of Europe, serving the lithium-ion battery industry, as well as other high-technology applications.