ASX Release

Vancouver

2020/10/21

Euro Manganese Announces Private Placement

  • C$11.4 Million (A$12.0 million) private placement oversubscribed, with strong institutional participation

  • Euro Manganese to place order for its demonstration plant immediately


VANCOUVER, British Columbia, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V / ASX: EMN) (the "Company" or "EMN") is pleased to announce a private placement financing (the "Offering") of 1,933,246 common shares ("Shares") and 58,066,754 CHESS Depositary Interests ("CDIs", with each CDI representing one Share), at a price of C$0.19 per Share or A$0.20 per CDI, for aggregate gross proceeds of approximately C$11.4 million (A$12.0 million) (the "Offering"). 


Net proceeds of the Offering will be used by the Company to further progress its Chvaletice Manganese Project in the Czech Republic (the “Project”), including the purchase, installation and operation of the Demonstration Plant, advancing the Project’s permitting and feasibility study, and for general corporate purposes. The issue was oversubscribed and received strong support from both new and existing shareholders, including a number of new institutional and specialist resources investment funds.


Marco Romero, President and CEO of EMN stated: “We are very pleased to see such strong investor interest in this equity offering. It will provide us the capital to accelerate progress at our Chvaletice Manganese Project and will allow us to push ahead with the project permitting, the feasibility study, and to initiate the testing phase of the supply chain qualification of our high-purity manganese products. We will place the order for our demonstration plant immediately.”


The Offering is intended to close in two tranches, comprising of:

  • Tranche One: 716,384 Shares and 31,183,616 CDIs for aggregate gross proceeds of approximately C$6,061,000, expected to close on or about October 28, 2020; and

  • Tranche Two: 1,216,862 Shares and 26,883,138 CDIs for aggregate gross proceeds of approximately C$5,339,000, which will be subject to shareholder approval as required by Listing Rules 7.1 and 10.11.1 of the Australian Securities Exchange ("ASX") to be sought at the Meeting (as defined below) to be held by the Company in December 2020.


Tranche One is comprised of the maximum number of securities that can be issued by the Company under ASX Listing Rule 7.1. 

Tranche Two is comprised of (i) subscriptions for 1,040,265 Shares and 26,883,138 CDIs for aggregate gross proceeds of C$5,305,447 to be issued in excess of the number permitted under ASX Listing Rule 7.1, which are subject to approval by the Company’s shareholders; and (ii) subscriptions by related parties of the Company (consisting of directors of the Company and companies controlled by directors of the Company) for 176,597 Shares for aggregate gross proceeds of C$33,553, which are subject to approval by the Company’s shareholders as required by ASX Listing Rule 10.11.1. 

The Company expects to call and hold a special meeting of shareholders in December 2020 (the "Meeting") to approve the issuance of Shares and CDIs in Tranche Two. The Company expects to file a management information circular in connection with the Meeting in due course. The Offering is subject to the approval of the TSX Venture Exchange ("TSXV").


Canaccord Genuity (Australia) Limited ("Canaccord Genuity") is acting as Lead Manager and Bookrunner to the Offering, with Bacchus Capital Advisers Limited (acting as financial adviser to the Company). Fees payable in cash by the Company in connection with the Offering will be 6% of the aggregate gross proceeds from the Offering.

©2019 by Bacchus Capital Advisers Authorised and regulated by the Financial Conduct Authority