Euro Manganese Advances Chvaletice Project with Strategic Permits and $9.8M Raise

Strategic Milestones in Project Development

Euro Manganese Inc. (EMN) has marked significant progress in the development of its flagship Chvaletice Manganese Project in the Czech Republic. The company secured a Mining Lease Permit in January 2025, granting it exclusive and unrestricted rights to mineral extraction within the project area, a critical step that solidifies legal protection and paves the way for advancing construction and operational phases.

Further bolstering its position, the Chvaletice Project was designated a Strategic Project under the European Union's Critical Raw Materials Act and declared a strategic deposit by the Czech government. These designations are expected to facilitate expedited permitting, access to preferential financing, and eligibility for government grants and subsidies, enhancing the project's financial and regulatory outlook.

Capital Raising and Leadership Updates

In early 2025, Euro Manganese announced a private placement targeting gross proceeds of approximately CAD 9.8 million, alongside a Share Purchase Plan (SPP) for eligible ASX shareholders aiming to raise an additional CAD 1.4 million. These initiatives have attracted participation from notable investors including the European Bank for Reconstruction and Development and Eric Sprott. However, completion remains contingent on shareholder and regulatory approvals scheduled for May 15, 2025.

Leadership changes have also been a highlight this quarter. Martina Blahova was confirmed as the permanent President and CEO, with plans to join the Board of Directors upon regulatory clearance. Additionally, industry veteran Rick Anthon was appointed Chairman, succeeding John Webster, who will continue to serve on the Board and chair the Audit Committee. These appointments signal a strengthened governance framework as the company advances its development agenda.

Operational Progress and Market Positioning

The company’s Demonstration Plant, commissioned in July 2024, has successfully produced high-purity electrolytic manganese metal (HPEMM) and manganese sulphate monohydrate (HPMSM) products meeting stringent specifications for lithium-ion battery applications. This operational milestone supports ongoing efforts to secure binding offtake agreements, with several non-binding term sheets already in place across battery, chemical, and automotive sectors.

Euro Manganese is also advancing its North American growth strategy through the Bécancour Project in Quebec, Canada, although work remains on hold pending adequate financing. The company has adjusted its land acquisition plans at Bécancour, reducing the parcel size to 8 hectares, reflecting a more focused approach to project development in the region.

Financial Overview and Outlook

For the quarter ended March 31, 2025, Euro Manganese reported a net loss of CAD 3.9 million, an improvement from CAD 6.2 million in the same period last year. The reduction reflects lower project evaluation expenses and corporate costs, partially offset by increased finance expenses related to amended loan terms with Orion Resource Partners. The company’s cash position stood at CAD 2.8 million at quarter-end, underscoring the importance of the pending capital raises to sustain operations and advance project milestones.

Looking ahead, Euro Manganese’s priorities include completing the private placement and SPP, securing remaining surface rights for the Chvaletice Project, advancing Front End Engineering and Design (FEED) with its EPCM partner Wood Australia, and finalizing offtake agreements to underpin project financing. The company also aims to leverage its strategic designations to access EU and Czech funding programs.

While the manganese market benefits from growing demand driven by electric vehicle battery chemistries, the company faces typical development risks including financing execution, permitting timelines, and market uncertainties. Nonetheless, Euro Manganese’s recent regulatory and operational achievements position it well to capitalize on the evolving battery metals landscape.