Euro Manganese Unlocks Loan-to-Royalty Conversion Option with Orion

Strategic Amendments to Financing Agreements

Euro Manganese Inc., a key player in the battery materials sector, has announced important amendments to its convertible loan and royalty agreements with Orion Resource Partners. These changes grant Orion the discretion to convert the outstanding loan balance and accrued interest into a royalty stream at any time, a move that introduces greater financial flexibility for both parties.

The amendments also extend the timeline for reaching critical project milestones to June 30, 2026. This extension provides Euro Manganese with additional runway to progress its Chvaletice Manganese Project without the immediate pressure of earlier deadlines, reflecting a collaborative approach between the company and its financier.

Implications for the Chvaletice Manganese Project

The Chvaletice Project, located in the Czech Republic, is positioned to become Europe’s first domestic source of high-purity manganese, a vital component in electric vehicle batteries and clean energy technologies. By reprocessing historic mine tailings, Euro Manganese aims to produce electrolytic manganese metal and manganese sulphate monohydrate with a low carbon footprint, aligning with Europe’s strategic goals for supply chain independence and sustainability.

These financing amendments come at a pivotal time as the company advances its demonstration plant and optimization efforts. The flexibility to convert debt into royalties could help Euro Manganese manage its capital structure more efficiently, potentially easing future financing needs or aligning incentives with Orion’s long-term investment horizon.

Continued Partnership with Orion Resource Partners

Orion Resource Partners, a global investment firm with over $8.6 billion under management, specializes in metals critical to the energy transition. Their willingness to amend the agreements signals confidence in Euro Manganese’s project and its strategic importance in the evolving battery materials market.

While the core terms of the original agreements remain intact, this enhanced cooperation underscores a shared commitment to navigating the complexities of project development and financing in a dynamic sector. Investors will be watching closely for any future decisions by Orion to exercise the conversion option, which could impact Euro Manganese’s financial outlook and royalty obligations.