20.4 C
Belgrade
Supported byspot_img
spot_img

Euro Manganese Announces Offtake Term Sheet with Verkor

Member of Europium Groupspot_img
Supported byspot_img

 Euro Manganese inc. is pleased to announced it has entered into an offtake term sheet (the “Term Sheet”) with Verkor, a low-carbon battery manufacturer based in Grenoble, France, for the sale of high-purity manganese sulphate monohydrate (“HPMSM”) from the Company’s Chvaletice Manganese Project (“Chvaletice” or the “Project”) in the Czech Republic. The Term Sheet is non-binding.

The parties intend to enter an offtake agreement, where upon the pricing mechanism and minimum tonnages outlined in the Term Sheet, would become binding upon the signing by the parties of a legally binding offtake agreement, together with any other agreements necessary to give effect to the Project.

The offtake tonnages are equivalent to a percentage of the Company’s annual HPMSM production on a take or pay basis. Deliveries are to commence from first production, expected to be in 2027 1, for an initial tenure of eight years with potential for renewal. The commencement of the initial term shall be subject to successful qualification of the Company’s HPMSM from the Chvaletice Demonstration Plant in Verkor’s supply chain.

Supported by

Pricing will be based on an index-adjusted western benchmark price, representing HPMSM from a secure, traceable, local European supply source, with excellent ESG credentials and correlates to the Chvaletice HPMSM CO2 footprint, which is forecast to be approximately one-third of the incumbent Chinese industry. The price for Chvaletice HPMSM will rise and fall proportionally with the movement of a published HPMSM index, on a rolling three-month quotational period. Pricing is subject to a floor price which ensures the Company will meet its project financing debt covenants.

This Term Sheet is the Company’s first term sheet for a long-term offtake. The Company anticipates more term sheets or agreements will follow in the near term as a result of the offtake tender process, which is currently underway.

 

Source: Euro Manganese

Supported byElevatePR Digital

Related News

Weardale Lithium proposes advanced extraction plant in County Durham, UK

Weardale Lithium Limited, a natural resources company based in County Durham, UK, has recently filed a planning application with Durham County Council. This application...

EU nations present critical minerals investment strategies at Raw Materials summit

Representatives from leading nations disclosed their plans for critical minerals public funds at this year's Raw Materials Summit in Brussels, aiming to attract investment...

Final legal discussions underway for EU-Serbia lithium trade partnership

Commissioner Maroš Šefčovič revealed that the final legal obstacles are being addressed before the EU-Serbia trade partnership, focused on sourcing lithium from the Jadar...

Unraveling China’s secretive mineral resource strategy: Impact on EU policy

In the midst of the EU's efforts to reduce reliance on China for critical mineral supplies, China's opacity regarding long-term plans for its mineral...
Supported by
Supported by
Supported by
error: Content is protected !!