Euro Manganese Secures C$11.2M Financing to Propel Chvaletice Manganese Project
Euro Manganese has successfully closed a C$11.2 million financing round, attracting heavyweight investors including the European Bank for Reconstruction and Development and Eric Sprott. The funds will accelerate development of its Chvaletice Manganese Project, a critical European source of battery-grade manganese.
- Raised C$11.2 million through private placement and oversubscribed share purchase plan
- European Bank for Reconstruction and Development (EBRD) and Eric Sprott become major shareholders
- Funds earmarked for advancing Chvaletice Manganese Project development and securing offtake agreements
- Issued stock options to directors, officers, employees, and consultants
- Interim CFO appointed following recent executive departure
Strategic Financing Boosts Euro Manganese
Euro Manganese Inc. has closed a significant C$11.2 million (A$12.3 million) financing package, combining a C$9.8 million private placement with an oversubscribed A$1.5 million share purchase plan. This capital injection comes after shareholder approval at the company’s recent Annual General and Special Meeting, underscoring strong investor confidence in the company’s vision and project pipeline.
The financing round notably welcomed two heavyweight investors: the European Bank for Reconstruction and Development (EBRD), which increased its stake to 17.48%, and renowned resource investor Eric Sprott, who acquired an 11.7% shareholding. Their participation signals robust institutional and strategic backing for Euro Manganese’s flagship Chvaletice Manganese Project in the Czech Republic.
Advancing a Critical European Battery Material Source
The Chvaletice Project is uniquely positioned as the only sizable manganese resource within the European Union, a critical raw material for electric vehicle batteries and the broader energy transition. Euro Manganese plans to use the proceeds to accelerate project development, including operating its demonstration plant, advancing permitting processes, and engaging customers to secure additional offtake agreements and strategic partnerships.
CEO Martina Blahova expressed satisfaction with the financing outcome, highlighting the importance of EBRD’s increased investment as a vote of confidence in the project’s strategic value. The funds will enable the company to pursue key milestones that could unlock further value for shareholders and position Euro Manganese as a vital supplier in the evolving battery materials supply chain.
Capital Structure and Management Updates
The financing included the issuance of over 54 million new securities, comprising shares and CHESS Depositary Interests, alongside warrants exercisable through late 2026. The company also granted stock options to directors, officers, employees, and consultants, aligning incentives as the project advances.
In parallel, Euro Manganese announced the appointment of an interim Chief Financial Officer, with CEO Martina Blahova stepping into the role following the departure of Dean Larocque. This transition comes at a pivotal time as the company navigates its next development phase.
Looking Ahead
With strategic investors on board and fresh capital secured, Euro Manganese is well-positioned to progress its Chvaletice Project through critical development stages. The company’s unique waste-to-value approach to manganese extraction aligns with growing demand for sustainable battery materials in Europe, potentially offering a competitive edge in a market increasingly focused on supply chain security and environmental responsibility.
Bottom Line?
Euro Manganese’s fresh capital and strategic partnerships set the stage for pivotal project milestones, but execution risks and market dynamics remain key watchpoints.
Questions in the middle?
- How quickly can Euro Manganese convert financing into tangible project development and production milestones?
- What progress will be made in securing binding offtake agreements and strategic partnerships?
- Who will be appointed as the permanent CFO, and how will this impact financial strategy?
