Euro Manganese on-track to complete Chvaletice feasibility study by end of 2021

Euro Manganese Inc (ASX:EMN) (CVE:EMN) (OTCMKTS:EROMF) expects a feasibility study for Chvaletice Manganese Project in the Czech Republic to be completed by the end of 2021, subject to additional financing and completion and commissioning of a demonstration plant. The company has taken a key step in bringing the project to production by placing an order for a high-purity manganese products demonstration plant for which procurement and fabrication are underway. With the aim of reducing costs and technical risks, this forms of key part of the company’s strategy to evaluate potential value-enhancing opportunities for the Chvaletice project. Additional value-enhancing includes optimising building sizing, equipment selection, solid-liquid separation methods, alternative magnesium removal methods, manganese sulphate crystallisation technologies, leaching methods as well as minimising energy and water consumption. Advancing Chvaletice project EMN has made significant strides in advancing the Chvaletice project as it aims to be Europe’s only primary producer of ultra-high-purity electrolytic manganese metal with a best-in-class environmental footprint. The company's latest Management Discussion and Analysis report stated: “The Chvaletice Manganese Project is also expected to result in the environmental remediation of a polluted former mine site, bringing it into full compliance with modern Czech and European Union environmental standards and regulations. EMN believes that the project’s location in the heart of Europe’s fast-growing EV production hub make it a European and globally strategic asset. Demand for high-purity manganese products is growing rapidly, fuelled largely by the Li-ion and electric vehicle markets, particularly in Europe where 100% of high-purity manganese products are imported. Chvaletice is targeting production of ultra-high-purity electrolytic manganese metal (HPEMM) with specifications exceeding 99.9% manganese and ultra-high-purity manganese sulphate monohydrate (HPMSM) with a minimum manganese content of 32.34%, both of which exceed typical industry standards. Additional funding requirement Subsequent to the end of FY20, the company raised approximately C$11.4 million in a placement which will assist in financing the feasibility study, placing the demonstration plant order and advancing the EIA and permitting process. In its MD&A report, Euro Manganese said: “The company does not expect that its current capital resources and the proceeds from the offering will be sufficient to fully complete the feasibility study and the installation, commissioning and operation of the demonstration plant. “Accordingly, the company expects it will be required to raise additional funding for its final stage of development. “The expected funding of the external costs of the feasibility study and the operation of demonstration plant for one year is estimated at a total of C$11.2 million and internal costs to complete these stages of the project are estimated to amount to C$6 million bringing the total costs to C$17.2 million.” Strategic partner interest During fiscal 2020 and following the receipt of expressions of interest from various parties to partner in the development of the project, the company initiated a process with its financial adviser, BCA, to secure a strategic partner to assist with further development. While the company has received some indicative proposals, it has not yet received any binding offers and there can be no assurance that this process will result in any form of transaction. The company believes that the capacity for project financing is likely to compare advantageously to the majority of mining projects given its safe jurisdiction, quality of potential offtake agreements that are possible in this industry, environmental benefits, and strategic position within the European battery supply chain.