Vancouver, British Columbia – 26 August 2024 | Euro Manganese Inc. (TSX-V:EMN; ASX:EMN; OTCQB:EUMNF; Frankfurt:E06) ("Euro Manganese" or "the Company") is pleased to announce the signing of a new offtake term sheet with Blue Grass Chemical Specialties ("Blue Grass Chemical") for the supply of high-purity electrolytic manganese metal (“HPEMM”), coming from the Company’s flagship Chvaletice Manganese Project in the Czech Republic. This agreement is a significant milestone in the development of the Chvaletice Project and continues to position Euro Manganese as a key supplier of critical battery materials.
Highlights:
-
Offtake Agreement: Euro Manganese and Blue Grass Chemical have agreed to enter into an offtake agreement that will specify the pricing mechanism and tonnages for HPEMM supply, constituting a portion of the planned production from the Chvaletice Manganese Project.
-
Supply Commitment: The term sheet outlines a seven-year initial term for the agreement, with potential for an eventual renewal. Deliveries are expected to begin with the Project’s first production run, ramping up as production capacity increases.
-
Pricing Structure: The pricing for HPEMM will be on a take-or-pay basis, linked to an index-adjusted western benchmark price for high-purity manganese sulphate monohydrate (HPMSM), ensuring compliance with debt finance banking covenants.
-
Product Qualification: The commencement of the offtake agreement will be subject to the successful qualification of Euro Manganese’s HPEMM in Blue Grass Chemical’s supply chain. This has begun with samples from the Project’s Demonstration Plant, which are now currently under evaluation.
-
Market Demand: The term sheet reflects the growing demand for high-purity manganese metal in battery production, particularly for lithium-ion batteries.
-
ESG Credentials: The Chvaletice Project’s production will meet stringent ESG (Environmental, Sustainability, and Governance) standards, including a low CO2 footprint. This makes the Project and this process a critical component in the sustainable supply chain for electric vehicles (EVs) and other technologies with an ESG focus and targets.
Dr. Matthew James, President & CEO of Euro Manganese, stated: “The momentum for demand for Euro Manganese’s high-purity manganese from the Chvaletice Project is gathering pace, and I am incredibly pleased the Company has secured another offtake Term Sheet. The fact that Blue Grass Chemical requires high-purity manganese metal for their existing operations, and potential for increased tonnages as they evaluate new opportunities, demonstrates the value of designing our flow sheet to produce both high-purity manganese metal and sulphate at Chvaletice, thus giving customers optionality for their manufacturing processes. We look forward to supplying Blue Grass Chemical with a fully traceable, responsibly produced and IRA compliant source of high-purity manganese as they deliver low-cost, sustainable US-manufactured battery materials, as well as for other industrial applications. We are proud to be partnering with a company who shares our ambition of helping to create a cleaner world by enabling the production and adoption of electric vehicles.”
Mr. Matthew Brenner added: “We are excited about the opportunity to use Euro Manganese’s high-purity manganese in our operations. Blue Grass Chemical Specialties’ expertise in the chemical manufacturing industry enables us to provide not just products but also valuable knowledge and support to our customers, helping them to achieve their operational goals through the effective use of manganese nitrate. Whether you are in the market for high-quality manganese nitrate for battery production, agriculture, catalysis, or any other application, Blue Grass Chemical Specialties is your trusted partner”
About Blue Grass Chemical Specialties:
With sustainability at its core and over 55 years of experience in the aqueous metal salts business, Blue Grass Chemical services industries such as oil and gas, catalysis, agriculture, metal finishing, electronics, as well as the EV battery industry by producing manganese nitrate as a precursor to manganese dioxide and other manganese oxides which are critical components in EV battery production, particularly nickel manganese cobalt (NMC) batteries, a form of lithium-ion battery, commonly used in electric vehicles due to their high energy density, long cycle life, and lightweight properties. Blue Grass Chemical is ideally situated in what is beginning to be termed America’s “Battery Belt” with its plant being strategically located for intermodal transportation across the Ohio River from Louisville, KY, the #3-rated global logistics hub (Business Facilities Magazine, 2023).
For more information, please visit www.bluegrasschemical.com
For further information, please contact:
Dr. Matthew James
President & CEO
mjames@mn25.ca
Neil Weber
Investor and Media Relations – North America
+1 (647) 222-0574
neil.weber@loderockadvisors.com
Jane Morgan
Investor and Media Relations – Australia
+61 (0) 405 555 618
jm@janemorganmanagement.com.au
About us:
About Euro Manganese:
Euro Manganese is a battery materials company focused on becoming a leading producer of high-purity manganese for the electric vehicle industry. The Company is advancing development of the Chvaletice Manganese Project in the Czech Republic and an early-stage opportunity to produce battery-grade manganese products in Bécancour, Québec. The Chvaletice Project is a unique waste-to-value recycling and remediation opportunity involving reprocessing old tailings from a decommissioned mine. It is also the only sizable resource of manganese in the European Union, strategically positioning the Company to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy. Euro Manganese is dual listed on the TSX Venture and the ASX.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au