Euro Manganese Inc. announced the entering into of a strategic investment agreement of CAD 8,499,500 with the EBRD. As part of the due diligence process, the EBRD engaged an independent, international natural resources consultancy to undertake a technical and environmental review of the Chvaletice Manganese Project. The EBRD's Environmental and Social Policy is progressive and in keeping with international best practices, which EMN met. EMN has undertaken to maintain compliance with the EBRD's environmental, social, economic inclusion and equal opportunity standards. The Company's relationship with the EBRD is expected to be highly strategic as the European Union ("EU")
charts a path towards greater supply security and sustainability. Supporting the development project of
Europe's only primary producer of high-purity manganese, an essential battery raw material, aligns with
these EU goals. The investment is to be affected by way of a private placement of 17,800,000 common shares of the
Company to be issued to EBRD at a price of CAD 0.4775 per share (the "Placement"). Upon the closing of
the Placement, EBRD will hold approximately 4.5% of the Company's common shares (on a non-diluted
basis). In connection with the Placement, EMN and EBRD will enter into a project support agreement
whereby, subject to certain conditions, the EBRD will be granted rights that allow participation in future
financings to maintain its pro rata equity interest in the Company.
The proceeds from the Placement will increase the Company's flexibility in financing the Chvaletice
Manganese Project in the Czech Republic, including the feasibility study, site preparation and operating
costs for the Demonstration Plant, and environmental works including permitting and other activities
related to the Final Environmental and Social Impact Assessment.
The agreement between EBRD and Euro Manganese was facilitated through EMN's relationship with EIT
InnoEnergy, which entered into an agreement with EMN earlier this year to assist in securing access to
project financing and customer off-take agreements. Pursuant to the agreement between EMN and EIT
InnoEnergy, on completion of Placement, the Company will pay EIT InnoEnergy a cash finder's fee equal
to CAD 254,985, being 3% of the gross proceeds of the Placement.