Canadian battery materials company Euro Manganese (TSX-V: EMN; Frankfurt: E06) has confirmed that it has begun the process of securing the financing it needs to develop its flagship high-purity manganese project in the Czech Republic. This will help the company move towards a final investment decision, which is expected in 2023.
To this end, Euro Manganese has surrounded itself with an experienced financial adviser, Stifel Nicolaus Europe SA., a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), to provide expertise in the mining and metals sector and assist in structuring and securing financing for the company’s Chvaletice project. Stifel’s appointment will allow dialogue with a number of potential financiers and their due diligence processes to begin.
Manganese is a brittle silver metal that, when processed to a high purity state, is used as battery material in electric cars. With demand for electric vehicles increasing at a rapid pace, car manufacturers can no longer do without the various metals used in car batteries, including manganese, lithium, cobalt and nickel.
The Chvaletice project is the only significant manganese resource located within the European Union and is right on the doorstep of major European automakers. It is within reach of Tesla’s gigafactory in Berlin.
Matthew James, the CEO of Euro Manganese is very enthusiastic about this appointment. “Stifel is a reputable capital solutions advisory firm with a successful fundraising and debt experience. Euro Manganese will benefit from its extensive experience in project financing and its relationships with strategic partners in the European electric vehicle battery market,” he said.
Eco-responsible manganese production
One of the benefits of Euro Manganese’s high purity manganese is that it is produced in an environmentally friendly manner. The project is a unique waste recovery and remediation opportunity that involves the reprocessing of historic tailings, which are residual waste from a previously operational mine. The production process aims to use 100% renewable energy, which results in a low carbon footprint. The company has been backed by major European institutions, including the European Bank for Reconstruction and Development (EBRD) and EIT InnoEnergy.
“Euro Manganese is uniquely positioned to capitalize on the growth of the European electric vehicle market. Having the only significant manganese resource in Europe combined with the development of a processing plant to produce high purity manganese products, they will have a fully traceable and sought after product for the electric vehicle industry. Additionally, as the Chvaletice project involves the reprocessing and rehabilitation of historic mine tailings, the environmental credentials of the project should be very compelling to financiers,” said Jan-Erik BackHead of Stifel’s Capital Solutions Group.
The company is currently advancing work on a demonstration plant, which is designed to produce large scale product samples and will allow potential customers to complete their supply chain qualification of Chvaletice’s high purity manganese products. Shipments of the demonstration plant modules, which will be assembled in Chvaletice, are expected on site in July.
The plant will be operational in September
The assembly process will take place over the summer, preparing the plant to start up in September. Preparatory work has already been done for the purchase of high purity manganese products with the signing of five memorandums of understanding. The company is advancing talks with potential customers, including cathode, battery and automotive companies, with the aim of having removal contracts in place by the end of this year.
Stifel’s affiliate brokers provide securities brokerage, investment banking, trading, investment advisory and related financial services to individual investors, professional fund managers, corporations and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of personal and corporate lending solutions.