Euro Manganese Inc. reported progress on its Chvaletice and Bécancour manganese projects, securing funding amendments and advancing permitting despite ongoing financial pressures. The company is positioned to benefit from growing demand for high-purity manganese in lithium-ion batteries amid evolving market dynamics.
- Amendments to $100 million Orion funding package extend milestone deadlines
- Optimization program underway to improve commercial plant design
- Mining lease secured and key environmental permits progressing in Czech Republic
- Ongoing negotiations for remaining land access and offtake agreements
- Liquidity challenges persist with working capital deficit and operating losses
Project Development and Financing Update
Euro Manganese Inc. (ASX – EMN) has provided its latest Management’s Discussion and Analysis for the quarter ended December 31, 2025, highlighting steady progress on its flagship Chvaletice Manganese Project in the Czech Republic and its North American Bécancour Project in Canada. The company secured amendments to its US$100 million funding package with Orion Resource Partners, extending milestone deadlines to mid-2026 and granting Orion discretion to convert outstanding loan amounts into royalties. This flexibility is critical as Euro Manganese navigates the complex path toward commercial production of high-purity manganese products.
Alongside financing developments, the company has initiated an optimization program to incorporate operational learnings from its demonstration plant into the design of the planned commercial facility. This program targets improved recoveries, optimized equipment sizing, reduced reagent consumption, and enhanced process control, aiming to lower capital intensity and improve sustainability outcomes.
Permitting and Land Access Progress
Significant permitting milestones have been achieved, including the securing of a mining lease permit in January 2025, which grants exclusive mineral extraction rights and legal protection for the project area. The company has also submitted documentation for land planning permits related to the processing plant and railway infrastructure, with final approvals expected within six months. Additional construction permits are anticipated by mid-2026, paving the way for infrastructure development.
Land assembly efforts continue, with Euro Manganese having acquired key parcels adjacent to the tailings deposit and signed lease agreements covering approximately 85% of the manganese reserves. Negotiations remain ongoing for the remaining surface rights, which are essential for full project access but currently lack assurance of acquisition.
Market Position and Offtake Strategy
The company is well-positioned to capitalise on the growing demand for high-purity manganese products, which are critical components in lithium-ion batteries used in electric vehicles and energy storage systems. Euro Manganese has signed five non-binding offtake term sheets for its high-purity electrolytic manganese metal and manganese sulphate products, with ongoing discussions aimed at converting these into binding agreements covering 80-90% of production capacity to support project financing.
Market dynamics remain complex, with evolving battery chemistries increasingly favouring manganese-rich formulations such as LMFP and LMR, driven by cost and performance advantages. Geopolitical shifts and regulatory frameworks in Europe and North America are also encouraging diversification away from traditional supply chains, enhancing the strategic importance of Euro Manganese’s European project.
Financial Position and Outlook
Despite technical and strategic progress, Euro Manganese continues to face liquidity challenges. The company reported a net loss of $3.6 million for the quarter and a working capital deficit of $25.7 million at year-end. While a recent private placement and share purchase plan raised over $11 million, current capital resources are insufficient to fund corporate and project development costs for the next twelve months without additional financing.
The company acknowledges material uncertainty regarding its ability to continue as a going concern and is actively exploring further financing options. Operating losses are expected to continue as the Chvaletice Project advances through permitting, optimization, and commercialisation phases.
North American Expansion on Hold
Work on the Bécancour Project in Quebec remains on hold pending financing. The company holds an option to acquire land strategically located near planned cathode active material manufacturing plants, with plans to produce high-purity manganese products for the North American market. The option period has been extended to September 2026, with monthly payments required to maintain exclusivity.
Completion of a feasibility study and permitting for Bécancour are contingent on securing adequate funding and finalising project plans.
Bottom Line?
Euro Manganese’s technical and strategic advances position it well in a critical battery materials market, but financing and permitting hurdles remain key challenges ahead.
Questions in the middle?
- Will Euro Manganese secure binding offtake agreements to underpin project financing?
- Can the company obtain remaining surface rights critical for full project access?
- How will evolving battery chemistries and geopolitical shifts impact manganese demand and pricing?