VANCOUVER, British Columbia, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQB: EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce it has entered into an offtake term sheet dated September 6, 2024 (the "Term Sheet") with FeMoCat Ltd ("FeMoCat"), for the sale of high-purity manganese sulphate and a process by-product, magnesium carbonate, from the Company’s Chvaletice Manganese Project ("Chvaletice" or the "Project") in the Czech Republic.
Highlights
- FeMoCat is an established industrial catalyst manufacturer, with a plant at Pardubice in the Czech Republic, less than 1 hour’s drive from the Chvaletice Manganese Project.
- Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate ("HPMSM") production and a significant tonnage of the magnesium carbonate produced as a by-product.
- FeMoCat will use these products for its catalysts and Synthetic Hydrotalcites production in Pardubice.
- Pricing in the Term Sheet is designed to meet the Project’s debt finance banking covenants.
- The Company and FeMoCat intend to enter an offtake agreement, in which the pricing mechanism and tonnages will become binding.
- The Term Sheet demonstrates the value of producing high purity manganese sulphate with market leading ESG credentials at Chvaletice and the ability to meet the needs of a larger and more diverse customer base.
Headquartered in Dublin, Ireland, and with plants in the Czech Republic and China, FeMoCat is a global provider of catalysts for the manufacturing of commodity organic chemicals, including Formaldehyde, Aniline and Volatile Organic Compounds (VOC). In addition to manufacturing catalysts, FeMoCat also undertakes recycling of used catalysts and provides tolling services for other catalyst companies and is an advocate for Green Chemistry, seeking to reduce, eliminate, or prevent the generation of hazardous substances in the design, manufacture and application of its catalysts.
Offtake tonnages represent a portion of the Project’s planned high-purity manganese sulphate monohydrate ("HPMSM") production. Magnesium carbonate is a by-product produced at Chvaletice from the purification of HPMSM, and a significant tonnage of magnesium carbonate offtake is included in the Term Sheet.
Deliveries are to commence from first production, ramping up with the Project’s production capacity, for an initial term of seven years with potential for renewals. The commencement of the initial term will be subject to successful qualification of the Company’s HPMSM and magnesium carbonate by FeMoCat. The qualification process shall commence with samples from the Project’s Demonstration Plant.
Pricing for the HPMSM will be on a take or pay basis, based on an index-adjusted western benchmark price. The western benchmark price represents HPMSM with the following attributes: high quality, secure, traceable, western supply source, and market leading ESG (Environment, Sustainability and Governance) credentials, including a low CO2 footprint.
Pricing for the magnesium carbonate by-product will reflect current market prices, European origin and the same leading ESG credentials and will be linked to an appropriate magnesium index.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
“The demand for Euro Manganese’s high-purity products from the Chvaletice Project continues to accelerate with companies recognising the impending deficit and securing their requirements via an offtake Term Sheet. The fact that FeMoCat requires locally sourced products for their existing operations in Pardubice, and potential for increased tonnages as they evaluate new opportunities, demonstrates the value of having a resource in the heart of Europe. Furthermore, the ability to provide FeMoCat with a valuable magnesium carbonate feedstock, from one of the Project’s by-products, underscores both companies commitments to maximising process efficiency and circularity. We look forward to supplying FeMoCat with fully traceable, responsibly produced products and are proud to be partnering with a company who shares our ambition of seeking to reduce or eliminate the use or generation of hazardous substances in their processes and is focussing on reducing emissions, improving energy efficiency and recycling products, which is at the core of our values.”
Tommy Heino, President & CEO of FeMoCat said:
“This Off-Take secures raw materials for FeMoCat’s expansion at Semtinzone/Rybitvi in Pardubice, for our catalysts and Synthetic Hydrotalcite production, from a local source being only 20 km from Euro Manganese’s plant in Chvaletice. Synthetic Hydrotalcites can be used for multiple downstream applications, and we foresee a 4,000 t/y of production. FeMoCat will also provide the products from Euro Manganese to FeMoCat’s partners and service clients. We look forward to a long lasting and mutually beneficial relationship with Euro Manganese and its great team.”
About Euro Manganese
Euro Manganese is a battery materials company focused on becoming a leading producer of high-purity manganese for the electric vehicle industry. The Company is advancing development of the Chvaletice Manganese Project in the Czech Republic and an early-stage opportunity to produce battery-grade manganese products in Bécancour, Québec.
The Chvaletice Project is a unique waste-to-value recycling and remediation opportunity involving reprocessing old tailings from a decommissioned mine. It is also the only sizable resource of manganese in the European Union, strategically positioning the Company to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.
Euro Manganese is dual listed on the TSX Venture and the ASX.
Authorized for release by the CEO of Euro Manganese Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the ASX accepts responsibility for the adequacy or accuracy of this release.
Enquiries
Dr. Matthew James
President & CEO
+44 (0)747 229 6688
mjames@mn25.ca
LodeRock Advisors
Neil Weber
Investor and Media Relations – North America
+1 (647) 222-0574
neil.weber@loderockadvisors.com
Jane Morgan Management
Jane Morgan
Investor and Media Relations - Australia
+61 (0) 405 555 618
jm@janemorganmanagement.com.au
Website: www.mn25.ca
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Enquiries – FeMoCat
Mr. Tommy Heino
President & CEO
heino@femocat.cz
Forward-Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company, its Chvaletice Project, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
Such forward-looking information or statements also include, but are not limited to, statements regarding the Company’s intentions regarding the development of the Chvaletice Project, its ability to produce high-purity manganese products with market leading ESG credentials and magnesium carbonate that can be qualified by FeMoCat, its ability to enter into a long term off-take agreement with FeMoCat , for offtake pricing to meet anticipated debt finance covenants, ability of the Company to meet the needs of a larger and more diverse customer base, and any impending deficit of high-purity manganese products.
All forward-looking statements are made based on the Company's current beliefs including various assumptions made by the Company including that the Chvaletice Project will be developed and operate in accordance with current plans, that the Company will obtain sufficient financing, and that the Company will be able to conclude a binding offtake agreement on favorable terms. Factors that could cause actual results or events to differ materially from current expectations include, among other things: lack of sufficient working capital; risks and uncertainties related to the ability to obtain, amend, or maintain necessary licenses, or permits; risks related to acquisition of surface rights; risks related to granting security, securing sufficient offtake agreements, and the availability of acceptable financing for developing and advancing the Chvaletice Project and for continued operations; the availability and reliability of equipment, facilities, and suppliers necessary to complete development; the ability to develop adequate processing capacity with expected production timing, rates, and cost; the presence of and continuity of manganese at the Chvaletice Project at estimated grades; the potential for unknown or unexpected events to cause contractual conditions to not be satisfied; developments in EV (Electric Vehicles) battery markets and chemistries; and risks related to fluctuations in currency exchange rates, changes in laws or regulations; and regulation by various governmental agencies. For a further discussion of risks relevant to the Company, see "Risk Factors" in the Company's annual information form for the year ended September 30, 2023, available on the Company's SEDAR+ profile at www.sedarplus.ca.
Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
