Euro Manganese Orders High-Purity Manganese Products Demonstration Plant for Delivery in Summer of 2021 and Provides Update
Euro Manganese Orders High-Purity Manganese Products Demonstration
Plant for Delivery in Summer of 2021 and Provides Update
VANCOUVER, British Columbia, Nov. 18, 2020 --
Euro Manganese Inc. (TSX-V/ASX: EMN) (the " Company" or " EMN"), is pleased to provide an update on its 100%-owned
Chvaletice Manganese Project (the “Project”) in the Czech Republic:
Highlights:
• Demonstration Plant order placed. Procurement and fabrication to commence immediately. Sets stage for initiation of
Chvaletice high-purity manganese products supply chain qualification process with multiple prospective customers;
• All land for Chvaletice commercial plant now secured, with three additional agreements for land purchase and leases,
including a second rail line connection;
• Demonstration Plant permitted as proposed. Requires no separate Environmental Impact Assessment (EIA) or
permitting, other than a building permit;
• Dry stacking tailings operation approved without the introduction of additional fees.
Mr. Marco Romero, President and CEO of EMN, commented:
“We are delighted to report that we have ordered our Demonstration Plant for the Chvaletice Manganese Project. Once
commissioned, we expect to begin the test phase of the supply chain qualification process for our high-purity manganese
products with multiple potential customers. We have also continued to make steady progress on the regulatory/permitting
front, following our filing of the EIA notification in late June. We are also pleased to report the acquisition of three additional,
but critically important pieces of land that complete our land assembly for the proposed Chvaletice commercial plant site.
These provide additional room and flexibility for the plant layout and will provide us with a second rail connection, through a
neighbouring rail siding, to the major line that runs adjacent to our Project.”
Demonstration Plant (“DP”)
Euro Manganese is pleased to report that it has given the green light for the procurement and fabrication of its Chvaletice
Demonstration Plant.
The DP is a 7-times scale up of the successful pilot plant that the Company operated in 2018. It is designed as a locked-
cycle, semi-batch, manually operated system of interconnected modules that can be utilized as a circuit or as stand-alone
components. The DP is intended to replicate the entire process flowsheet proposed in the Project’s 2019 Preliminary
Economic Assessment. It will produce around 32 kg/day of high-purity electrolytic manganese metal (" HPEMM"), that can be
converted into approximately 100 kg/day of dry crystalline high-purity manganese sulphate monohydrate ("HPMSM").
The DP is scheduled to be delivered at the Chvaletice site during the summer of 2021. It will be erected and operated in two
existing industrial buildings adjacent to the Chvaletice tailings site, on land that EMN agreed to purchase in October 2018.
As previously announced, the Company awarded a fixed-price, turnkey contract for the building, delivery and commissioning of
the DP to Changsha Research Institute for Mining and Metallurgy (" CRIMM"). This contract includes performance and
completion guarantees, as well as commissioning services and an operator training program. No additional permits are
required for the DP other than a building permit.
To date, approximately 55% of the DP’s planned first year production of HPEMM and HPMSM has been allocated to five
prospective customers for testing, in the context of their supply chain qualification process. Discussions are ongoing with
additional potential customers for the allocation of DP products for supply chain qualification. These include several chemical,
battery and automotive companies.
Upon successful completion of the initial supply chain qualification process by these parties, and subject to a production
decision being made based on the results of a feasibility study, the Company plans to enter into long-term commercial offtake
arrangements for the supply of its high purity manganese products.
Completion of Plant Land Assembly:
The Company is pleased to announce that it has agreed to acquire rights to three additional strategic parcels of land,
competing its land assembly for the proposed Chvaletice commercial plant:
1. Purchase from Sev.en EC, a.s., the owner of the Chvaletice power plant, a 1,952 m² section of land encompassing Rail
Spur no. 1, through which the proposed Chvaletice process plant will be serviced and connected to existing rail
infrastructure. This acquisition is particularly important for the Project, as it provides the company with a second rail
connection, through the existing rail siding of the neighboring power plant. This is expected to provide greater logistical
capacity and flexibility for the project. The cost of the land is CZK 252,762 (approximately CAD$14,320).
2. Purchase from Sprava Nemovitosti Kirchdorfer CZ s.r.o. of a 49,971 m² parcel of land, including a rail spur extension
that will provide additional room and flexibility for the definitive Chvaletice commercial plant layout. The cost of the land
is CZK 18,739,125 (CAD$1,098,844) and can be paid in five 7.5% annual installments (app. C$80,000), followed by the
remaining balance of approximately C$698,844 in the final year.
3. Lease from Galmet Trade, spol s.r.o. of a 3,504 m² right-of-way for a period of 30 years to allow the straightening of a
proposed conveyor route. Annual rental will be CZK 60,000 (CAD$3,000) and the Company will retain an option to
purchase this land during 2020 and 2021.
Regulatory/Permitting:
a) Environmental Impact Assessment Notification
As previously reported, the Company filed the Environmental Impact Assessment Notification with respect to the Chvaletice
Manganese Project on June 30, 2020, triggering the environmental permitting process for the Project. The Notification has
been accepted by the Ministry of Environment and the review process is currently underway. The Notification includes several
expert independent studies which were distributed to various local and national authorities as well as three surrounding
municipalities for comment.
The impacts of the Project on the environment, public health, social and cultural values, in the area of interest, were assessed
and evaluated according to Act 100/2001 Coll., which is based on Directive 2011/92/EU of the European Parliament and
Council and includes the proposed reprocessing of the historical mining waste, the rehabilitation of the entire area, and the
construction and operation of the Chvaletice Process Plant.
The environmental impact assessment of the Project is conducted in two stages [Stage 1 - EIA Notification (already filed) and
Stage 2 – Final EIA (expected to be submitted in Q2 2021] in order to identify significant impacts early on in the project
planning phase to ensure that recommendations from the relevant authorities and municipalities can be incorporated into the
development and operating plans, the final EIA, and in the definitive feasibility study that is currently ongoing.
b) Residue Storage
The Company also has received confirmation from the Czech Mining Authority that the dry stack tailings (non-magnetic
beneficiation tails and process residues) to be placed in the proposed Chvaletice Residue Storage Facility are deemed a
“mining waste”, thus allowing the Company to proceed with the proposed dry stacking operation without triggering waste
disposal fees.
Contracting of UK investor relations and communications firm:
Euro Manganese Inc. is also pleased to announce that it has contracted with The Armchair Trader Ltd. (“ The Armchair
Trader”) for investor relations services in the United Kingdom, including assisting in disseminating press releases, the
preparation of reports, and increasing investor awareness amongst the retail and institutional investment community in the UK,
Europe and elsewhere. The Armchair Trader provides investment broadcast services for publicly-traded companies, including
marketing and media services, and is headquartered in London, UK. Established in 2011, The Armchair Trader provides daily
news and analysis to a global network of investors interested in a broad range of asset classes.
The agreement between the Company and The Armchair Trader is for a period of six months commencing November 17, 2020,
with an option by the Company to extend the services. The Company’s anticipated total cost for the services to be provided by
Armchair Trader is $27,000, payable over the term of the agreement. The Armchair Trader has no direct interest in the
common shares of the Company.
Selected past EMN news releases for further background:
• Natura 2000 Positive Environmental Ruling: https://www.mn25.ca/post/euro-manganese-receives-significant-
environmental-ruling
• Filing of EIA Notification: https://www.mn25.ca/post/euro-manganese-to-file-chvaletice-manganese-projectenvironmental
-impact-assessment-notification
About Euro Manganese Inc.
Euro Manganese Inc. is a Canadian waste recycling company, whose principal focus is advancing the evaluation and
development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-
processing a significant manganese deposit hosted in historic mine tailings, strategically located in the Czech Republic.
EMN’s goal is to become a leading, competitive and environmentally superior primary producer of Ultra-High-Purity Manganese
Products in the heart of Europe, serving both the lithium-ion battery industry, as well as producers of specialty steel and
aluminum alloys.
Authorized for release by the CEO of Euro Manganese Inc.
Contact:
Marco A. Romero Fausto Taddei
President & CEO Vice President Corp. Development & Corp. Secretary
+604-681-1010 ext. 101 +604-681-1010 ext. 105
E-mail: [email protected] Website: www.mn25.ca
Company address:
1500 – 1040 West Georgia Street, Vancouver, British Columbia, Canada V6E 4H8
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 or the Project 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 relate to future events or future performance about the Company and its
business and operations, which include, among other things, statements with respect to the continued development of the
Chvaletice Manganese Project, statements regrading the regulatory/permitting progress at the Project, and the timing of the
delivery, erection and operation of the DP.
Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements
and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results
and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could
cause actual results to differ materially from the results discussed in the forward-looking statements or information, including,
but not limited to, the factors discussed under “Risks Notice” and elsewhere in the Company’s MD&A for the year ended
September 30, 2019 and its most recent Annual Information Form.
The forward-looking statements contained in this news release are made as of the date hereof 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange), or the ASX accepts responsibility for the adequacy or accuracy of this release.