Euro Manganese Closes Oversubscribed A$1.5M Security Purchase Plan
Euro Manganese has successfully closed an oversubscribed Security Purchase Plan, raising A$1.5 million to advance its Chvaletice Manganese Project in the Czech Republic. The capital injection will support project development, strategic partnerships, and working capital needs.
- SPP raised A$1.5 million via 7.69 million CDIs at A$0.195 each
- Oversubscription scaled back pro rata with minimum allocation protections
- Each CDI includes a free warrant exercisable at CAD$0.225 until November 2026
- Funds earmarked for Chvaletice Project development and strategic initiatives
- Strong participation from over 200 eligible Australian and New Zealand securityholders
Strong Shareholder Support for Capital Raise
Euro Manganese Inc. has successfully completed its Security Purchase Plan (SPP), raising the maximum targeted amount of A$1.5 million. The SPP attracted strong interest from over 200 eligible securityholders across Australia and New Zealand, with total applications exceeding A$1.9 million. To maintain fairness, the company implemented a pro rata scale-back on oversubscriptions, ensuring a minimum allocation of A$2,000 per participant.
Details of the Offer and Incentives
The SPP issued 7,692,307 CHESS Depositary Interests (CDIs) at a price of A$0.195 each. Notably, each CDI came with a free-attaching unlisted warrant, exercisable at CAD$0.225 and valid until November 23, 2026. This structure offers investors potential upside beyond the initial equity stake, aligning interests with the company’s future growth prospects.
Strategic Use of Funds
Proceeds from the SPP will be directed towards advancing the Chvaletice Manganese Project, a unique waste-to-value initiative in the Czech Republic. The project is strategically significant as it represents the only sizable manganese resource within the European Union, positioning Euro Manganese as a key supplier for battery materials critical to the electric vehicle industry. Funds will also support ongoing customer offtake negotiations, efforts to secure a strategic investor, pursuit of local and EU grants, and general working capital requirements.
Market and Regulatory Context
The SPP follows a previously announced upsized financing plan of up to A$12.3 million, subject to shareholder approval at the upcoming Annual General and Special Meeting. Settlement of the new securities is expected by May 23, 2025, with ASX quotation anticipated shortly thereafter. Legal and financial advisory roles were fulfilled by Minter Ellison, Canaccord Genuity, and Foster Stockbroking, underscoring the professionalism of the capital raise.
Looking Ahead
Euro Manganese CEO Martina Blahova expressed gratitude for shareholder support and optimism about the company’s transformational phase. The successful SPP completion not only strengthens the company’s balance sheet but also signals confidence in the Chvaletice Project’s potential to contribute to a circular, low-carbon economy through sustainable manganese production.
Bottom Line?
With fresh capital secured, Euro Manganese is poised to accelerate its strategic ambitions in the European battery materials market.
Questions in the middle?
- Will Euro Manganese secure the strategic investor it is targeting following this capital raise?
- How will the exercise of free-attaching warrants impact future shareholder dilution?
- What progress can be expected soon on customer offtake agreements and grant funding?
