Euro Manganese Explores Opportunity to Produce Battery-Grade Manganese in North America
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NR 2022-23
Euro Manganese Explores Opportunity to Produce
Battery-Grade Manganese in North America
VANCOUVER, British Columbia (November 16, 2022) – Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX:
EUMNF; Frankfurt: E06) (the "Company" or "EMN") is pleased to announce it is exploring an opportunity
to develop a project to produce high-purity manganese products in Canada for the North America n
market.
Highlights
• The demand for North American high purity manganese is expected to rise to approximately
200,000 tonnes per annum ( "tpa") metal equivalent by 2031, yet there is no current processing
capacity and production of battery-grade manganese in North America.
• A scoping study is underway to evaluate a site in Bécancour, Québec ("the Bécancour Project")
for production of high-purity manganese products following discussions with cathode and battery
manufacturers, and automotive OEMs in North America.
• The Bécancour Project scoping study will evaluate the dissolution of high-purity electrolytic
manganese metal ( "HPEMM") to produce a high -purity manganese sulphate monohydrate
("HPMSM") powder and/or a high-purity manganese sulphate solution ("HPMSS").
• The scoping study will leverage the extensive process development and engineering work recently
completed at the Company’s Chvaletice Manganese Project in the Czech Republic.
• Euro Manganese has an exclusive due diligence agreement on a strategic site at the Bécancour
industrial park where a cluster of precursor cathode active material manufacturing ("pCAM")
plants are currently under development.
Strategic Rationale for Development of the Bécancour Project
The North American electric vehicle market is experiencing rapid growth, aided by the recent United
States Inflation Reduction Act, which provides incentives for the localisation of battery production and
battery raw material supply chains. The resulting demand for North American high purity manganese is
expected to rise to approximatel y 200ktpa by 2031, yet there is no current processing capacity and
production of battery-grade manganese in North America.
In response to encouraging discussions with automotive OEMs, battery and cathode manufacturers
seeking to procure local, responsibly produced high-purity manganese in North America, Euro Manganese
is undertaking a scoping study on a Dissolution Plant within the Bécancour industrial park, in Québec. The
Dissolution Plant would utilise HPEMM to produce HPMSM powder and/or HPMSS liquid solution.
The benefit of a HPMSS product is the ability to pump a solution directly to nearby pCAM manufacturers,
removing the necessity to crystallise, dry and package a powdered HPMSM product, which is ultimately
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dissolved in water by the p CAM plants. Therefore, HPMSS saves costs for both parties and reduces CO2
emissions.
HPEMM production from the Chvaletice Project could initially supply the Dissolution Plant at Bécancour
and provide a strategic production base in Canada for the North American market. This would also allow
the Company to capture additional margin for the HPEMM that is not currently planned to be processed
through to HPMSM at the Chvaletice Project. The proportion of Chvaletice HPEMM to be processed at
Bécancour will be determined in the scoping study.
Euro Manganese has signed a three-month Land Access and Exclusivity Agreement ("the Agreement")
with The Société du parc industriel et portuaire du Bécancour, a Québec state enterprise and owner of
the proposed EMN 15-hectare land parcel within the Port of Bécancour . The Agreement allows the
Company to exclusively conduct due diligence on the land parcel , after which the Agreement allows the
Company the opportunity to conclude an option agreement for the purchase of the site.
The Company has engaged SNC -Lavalin, a global engineering services company based in Montréal, who
has extensive knowledge of the area, to conduct site due diligence and advise on permitting processes. In
parallel, the Company has commissioned the Vancouver office of Ausenco Engineering Canada Inc. , a
global engineering consultancy firm with expertise in battery metals, to conduct a scoping study for the
Dissolution Plant to an AACE Class 5 level of cost accuracy ( -30%/+ 50%). The study is leveraging the
extensive process development and recent engineering work from the Chvaletice Manganese Project.
Rationale for Québec Location
Bécancour is emerging as an important hub for the supply of low-carbon battery materials to the EV supply
chain in North America due to its numerous advantages, including a year-round deep-water port,
extensive road and rail infrastructure, access to low-cost hydro-electric power, strong governmental
support, sophisticated local service, equipment and reagent suppliers, and a qualified work force.
The proposed site is strategically located between two cathode plants under development and adjacent
to potential nickel sulphate and cobalt sulphate plants. Euro Manganese’s Bécancour Project would
complete the ternary cathode battery metal suite (nickel, manganese, cobalt) within the Bécancour
industrial park. The site is adjacent to road, rail, power and water supply.
Québec offers attractive government financial support programs, that may provide incentives for the
construction of the Dissolution Plant . The Company is exploring these incentives with the relevant
agencies.
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Figure 1. Port of Bécancour and its industrial park, showing location of the high-purity manganese
sulfate plant proposed by EMN.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
“The Bécancour Project advances Euro Manganese’s vision of building a multi -asset high -purity
manganese business in strategic location s to supply the rapidly growing EV market . It also positions the
Company to take advantage of forecast market growth specifically in North America, which has been
accelerated with the announcement of t he US Inflation Reduction Act. By developing what could be the
first high-purity manganese processing facility in North America, Euro Manganese stands to benefit from
this first mover advantage in supplying North American automotive OEMs, battery makers, and cathode
active material manufacturers with local and responsibly produced high-purity manganese products.
Our flagship Chvaletice Manganese Project in the Czech Republic remains at the heart of our focus and
strategy. The Bécancour Project is a natural extension of our work to date , especially as we are being
actively encouraged as part of our ongoing offtake discussions to produce high purity manganese products
in North America. To address this demand, alongside the potential incentives to develop a secure EV supply
chain in North America, we are taking action to explore this logical addition to our portfolio.”
About Euro Manganese Inc.
Euro Manganese Inc. 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 development 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 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.
Authorized for release by the CEO of Euro Manganese Inc.
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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 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 cer tain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achieved.
Such forward-looking information or statements include, but are not limited to, statements regarding the
Company’s North American growth strategy; timeframes for study results or any related due diligence;
any potential funding opportunities ; potential North American supply chain; potential value -creating
synergies; the Company’s ability to secure a first mover advantage; initial supply for the proposed
Dissolution Plant; the growth and development of the high purity manganese products market, the
desirability of the Company’s products, the growth of the EV industry, and the use of manganese in
batteries.
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 fro m current expectations include,
among other things: unexpected results from due diligence being conducted; the inability to conclude an
Option Agreement with The Société du parc industriel et portuaire du Bécancour; the inability to obtain
funding; the ability to develop adequate processing capacity; risks and uncertainties related to expected
production rates; 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; the failure of parties
to contracts with the Company to perform as agreed; risks related to global epidemics or pandemics and
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other health crises, including the impact of the novel coronavirus (COVID-19); availability and productivity
of skilled labour; risks and uncertainties related to interruptions in production; unforeseen technological
and engineering problems; risks related to permitting; 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,
2021, 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 Project at
estimated grades; the ability of the Company to obtain all necessary land access rights; the availability of
personnel, machinery, and equipment; manganese sales prices and exchange rates assumed; growth in
the manganese market; and success in realizing proposed operations.
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 these 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.