Euro Manganese Awards EPCM Contract to Wood Australia and Provides Update on Project Permitting
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NR 2023-12
Euro Manganese Awards EPCM Contract to Wood Australia and
Provides Update on Project Permitting
VANCOUVER, British Columbia (June 30, 2023) – Euro Manganese Inc. (TSX -V and ASX: EMN; OTCQX:
EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce it has awarded the
Engineering, Procurement, and Construction Management ("EPCM") contract for its Chvaletice
Manganese Project ("Chvaletice Project" or the "Project") in the Czech Republic to Wood Australia Pty Ltd
("Wood").
The Company also provides an update on the permit approval process for the Project.
EPCM Contract Award
The Company has selected Wood as its EPCM partner following a rigorous selection process. Five high
quality bids were submitted by international EPCM firms in late 2022. Two firms were shortlisted in early
2023 based on cost of service as well as their proposed project schedule, technical and engineering
capability, EU experience, team skillset, and overall execution strategy. The Company selected Wood as
the preferred contractor in April 2023 and has now concluded the contract negotiations and received
Board approval to award the contract to Wood.
The contract is cost reimbursable and is structured in two phases (outlined below), with an approval stage
gate between each phase as well as after the gap analysis in Phase 1. Completion of Phase 1 is anticipated
to take approximately 12 months , with a Final Investment Decision ("FID") to be made prior to
commencement of Phase 2. Receipt of FID from the Board requires securing outstanding permits and
project finance (debt and equity).
Phase 1 – Front End Engineering Design ("FEED")
The FEED phase includes an initial two-month gap analysis and in-depth review of the Definitive Feasibility
Study ("DFS") deliverables, including the testwork and flowsheet development conducted by the Company
over the last 7 years.
Following completion of the gap analysis, other key deliverables to be derived over the remaining 10
months during Phase 1 include: completion of value engineering; identification of long -lead time
equipment; vendor engagement, selection and firm pricing for major equipment items and packages; total
installed capital cost estimate to AACE Class 3 estimate accuracy (+/ - 10%); project implementatio n
strategy; a baseline schedule for the EPCM phase; and preparation of construction permit documentation.
Phase 2 - Engineering, Procurement and Construction Management
Upon making the Final Investment Decision, the Company will enter into the EPCM phase of the contract
once conditions precedent are satisfied. Wood will provide overall project and construction management
services throughout the EPCM phase of the project, which includes detailed design, procurement,
construction, and commissioning.
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Update on Permitting
The key outstanding permits for the Chvaletice Project include: the Environmental Social Impact
Assessment ("ESIA") approval, followed by the Land Planning Permit, and then the Construction Permit.
ESIA
The Czech Ministry of Environment received comments from 14 relevant authorities on the ESIA, which
was submitted in December 2022. All but one of the authorities approved the relevant studies, signalling
a positive perception of the Project by regulators. The Ministry has returned the ESIA to the Company to
address comments from the authority yet to approve the ESIA, related to noise abatement. The Company
expects to address these comments without an effect on the timeline to FID.
While the Chvaletice Project’s anticipated noise levels are within legislative limits for an industrial project,
as neighbouring operations adjacent to the Project site have existing noise emissions, the cumulative
effect marginally exceeds permitted noise levels at the measurement points, located at the closest
residential areas.
The revision of the noise study within the ESIA has also been requested to consider new noise legislation
related to traffic noise coming into force in July 2023. The details of this new legislation were released
after the Project ESIA was completed and submitted.
The necessary work to address the comments related to noise have already begun, and the revised ESIA
is expected to be submitted in August 2023, when the ESIA process can then continue. The Company
anticipates the issuance of a positive decision on the revised ESIA before the end of 2023.
Land Planning Permit
Upon approval of the ESIA, the Land Planning Permit can be submitted. The documentation for this
application is substantially complete and will be finalised upon receipt of the conditions in the approved
ESIA. The Land Planning Permit approval timeline is typically three months once submitted, resulting in
an anticipated approval by mid Q2 2024.
Construction Permit
As highlighted above, the Construction Permit documentation is a deliverable of the FEED phase and is
expected to be submitted at the end of Q2 2024. The permit approval timeline for the Construction
Permit is three months, resulting in an anticipated approval by Q3 2024.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
“Awarding the EPCM contract to Wood is another key milestone for the Company. It is the result of an
extensive and robust selection process, and I am very pleased to be partnering with such a high calibre ,
tier-one engineering firm. We look forward to building a world -class facility to produce high -purity
manganese, an essential component in lithium-ion batteries for EV vehicles. Together, we are working to
advance the global energy transition.
We fully respect the robustness of the ESIA process and are committed to minimising project impacts to
the surrounding communities. I am confident that we will move forward to a successful conclusion given
the positive statements received from the other stakeholders.”
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About Euro Manganese
Euro Manganese is a battery materials company focused on becoming a leading, competitive, and
environmentally superior producer of high -purity manganese for the electric vehicle industry and other
high-technology applications. The Company is advancing deve lopment of the Chvaletice Manganese
Project in the Czech Republic, which is a unique waste -to-value recycling and remediation opportunity
involving reprocessing old tailings from a decommissioned mine. The Chvaletice Project is the only sizable
resource of manganese in Europe, strategically positioning the Company to provide battery supply chains
with critical raw materials to support the global shift to a circular, low-carbon economy.
About Wood
Wood is a global leader in consulting and engineering, helping to unlock solutions to critical challenges in
energy and materials markets. The Company provides consulting, projects and operations solutions in 60
countries, employing around 35,000 people. www.woodplc.com
Authorized for release by the CEO of Euro Manganese Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) or t he ASX accepts responsibility for the adequacy or accuracy of t his
release.
Inquiries
Dr. Matthew James
President & CEO
+44 (0)747 229 6688
Louise Burgess
Senior Director, Investor Relations & Communications
+1 (604) 312-7546
Company Address: #709 -700 West Pender St., Vancouver, British Columbia, Canada, V6C 1G8
Website: www.mn25.ca
Forward-Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward -looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results, performance
or achievements of the Company, its Chvaletice Project, or industry results, to be materially different from
any future results, performance or achievements expressed or implied by such forward -looking
statements or information. Such statements can be identified by the use of words such as “may”, “would”,
“could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”,
“predict” and other similar terminology, or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Such forward-looking information or statements also include, but are not limited to, statements regarding
the Company’s intentions regarding the development of the Chvaletice Project, the timing for completion
and expected outcomes of each phase of the EPCM contract, the Company’s ability to raise the necessary
financing, timing of the Final Investment Decision for the Project, the Company’s ability to meet new
legislative requirements a pplicable to the ESIA, acceptability of the revised ESIA documentation by the
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Czech Ministry of Environment and the anticipated timing of its the approval, and the timing of the
anticipated submissions and approvals of the Land Planning Permit and Construction Permits.
Readers are cautioned not to place undue reliance on forward -looking information or statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual
results of the Company to differ materially from those discussed in the forward-looking statements and,
even if such actual results are realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially from current expectations include,
among other things: a delay or inability to get the revised ESIA approved by relevant authorities; risks and
uncertainties related to the ability to obtain, amend, or maintain necessary licenses, or permits, risks
related to acquisition of surface rights; timing and amount of production and total costs of production;
the potential for unknown or unexpected events to cause contractual conditions to not be satisfied;
unexpected results from the Gap Analysis and the FEED stages of the EPCM contract; risks and
uncertainties related to the accuracy of mineral resource and reserve estimates; changes in project
parameters as plans continue to be refined; risks related to gl obal epidemics or pandemics and other
health crises; availability and productivity of skilled labour; risks and uncertainties related to interruptions
in production; unforeseen technological and engineering problems; the adequacy of infrastructure; risks
related to project working conditions, accidents or labour disputes; social unrest or war; the possibility
that future results will not be consistent with the Company's expectations; developments in EV battery
markets and chemistries; and risks related to fluctuations in currency exchange rates, changes in laws or
regulations; and regulation by various governmental agencies. For a further discussion of risks relevant to
the Company, see "Risk Factors" in the Company's annual information form for the year ended September
30, 2022, available on the Company's SEDAR profile at www.sedar.com.
All forward -looking statements are made based on the Company's current beliefs as well as various
assumptions made by the Company and information currently available to the Company. Generally, these
assumptions include, among others: the presence of and continuity of manganese at the Chvaletice
Project at estimated grades; the ability of the Company to obtain all necessary land access rights; the
ability of the Company obtain all required environmental and other permits; successful completion of the
various stages of the EPCM contract, the availability of personnel, machinery, and equipment at estimated
prices, in good order, and within estimated delivery times; currency exc hange rates; manganese sales
prices; growth in the manganese market; the availability of acceptable financing for the Chvaletice Project
and for continued operations; success in realizing proposed operations in the Czech Republic and demand
for the Company’s products.
Although the forward -looking statements contained in this news release are based upon what
management of the Company believes are reasonable assumptions, the Company cannot assure investors
that actual results will be consistent with the se forward -looking statements. These forward -looking
statements are made as of the date of this news release and are expressly qualified in their entirety by
this cautionary statement. Subject to applicable securities laws, the Company does not assume any
obligation to update or revise the forward -looking statements contained herein to reflect events or
circumstances occurring after the date of this news release.