Euro Manganese has signed agreements with OMRF (BK), which is managed by the Orion Resource Partners Group, for $100m in non-dilutive financing to support the development of the Chvaletice manganese project in the Czech Republic.
The funding is divided into two parts, with the first part involving a loan facility of $50m convertible into a 1.29–1.65% royalty on revenues from the project.
The second part involves a $50m loan facility in exchange for a 1.93–2.47% royalty on project revenues. This is subject to other financing-related conditions and a final investment decision by the company.
Euro Manganese president and CEO Dr Matthew James said: “This is a transformative transaction for Euro Manganese, providing a funding package that facilitates the best possible pathway to a final investment decision and representing a collaboration between Euro Manganese, Orion and Stifel.
“The non-dilutive, tranche structure minimises the cost of funds and reduces future project financing requirements. This further validates the robust nature of the Chvaletice Project and our team’s ability to deliver this strategic battery raw material project for Europe to the highest of standards.”
Stifel Nicolaus Europe is acting as financial adviser to Euro Manganese while Norton Rose Fulbright is serving as legal counsel.
Source: Mining Technology