EUMNF - Euro Manganese Completes Land Access Agreement with CEZ | Benzinga
VANCOUVER, British Columbia, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Euro Manganese Inc. ((TSX-V and ASX: EMN, OTCQX:EUMNF, Frankfurt: E06)) (the "Company" or "EMN") is pleased to announce that it has signed a Lease Agreement (the "Agreement") with CEZ a.s. ("CEZ") for access to land owned by CEZ that is required for the development of the Chvaletice Manganese Project (the "Project").
Highlights
- Land access to approximately 60% of the Proven + Probable manganese Reserves in the Chvaletice tailings area secured via the Lease Agreement with CEZ.
- The Lease Agreement rent is based on a revenue royalty. The royalty mechanism allows anticipated project finance debt covenants to be met.
- Together with previously announced land access agreements, the Company has now secured access to approximately 85% of the total Reserves of the Project.
Euro Manganese and CEZ (the "Parties"), have signed a definitive Lease Agreement granting the Company access to CEZ-owned land in the historic Chvaletice tailings area. Approximately 60% of the Project's 27 million tonne Proven + Probable manganese Reserves sit upon land owned by CEZ. The Agreement also includes land required for mining infrastructure and tailings transportation.
Land access will be granted in return for a royalty on gross sales from the Project. During the seven-year project finance debt period (the "Debt Period"), the royalty will operate on a sliding scale from 0.2% to 1.8%, dependent on the average prices received for the Project's high-purity manganese products. This sliding scale royalty is designed to ensure anticipated project finance debt covenants are met. Post the Debt Period, the royalty will be 1.8% of gross sales from the Project.
The Company now has access to approximately 85% of the total Proven + Probable manganese Reserves required for the Project. As previously announced, the Company has secured all land required for the commercial plant site.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
"We are very pleased to work together with CEZ to realise this nationally important, strategic raw material project within the Czech Republic. High-purity manganese, an essential component in most lithium-ion-batteries, will play a critical role in the energy transition within Europe. As the only manganese resource within the EU, the Project will create skilled jobs in the region, stimulate the local economy and generate taxes and revenues for the Czech Government. The Company looks forward to continuing the positive relationship established with CEZ into ...