Euro Manganese Welcomes the European Critical Raw Materials Act
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NR 2023-07
Euro Manganese Welcomes the European Critical Raw Materials Act
VANCOUVER, British Columbia ( March 20, 2023) – Euro Manganese Inc. (TSX -V and ASX: EMN; OTCQX:
EUMNF; Frankfurt: E06) (the "Company" or "EMN") welcomes the European Commission’s ("EC" or the
"Commission") proposed Critical Raw Materials Act ("CRMA" or the "Act") published on March 16, 2023,
which o utlines how the European Union ("EU") intends to ensure a secure and sustainable supply of
critical raw materials that are essential in supporting the energy transition. The Company supports this
proposed legislation and believes it s Chvaletice Manganese Project (the "Chvaletice Project " or the
"Project") in the Czech Republic is likely to benefit as outlined below.
Key Highlights for Euro Manganese
• High-purity manganese (battery grade) included as a strategic raw material. “Manganese – Battery
Grade” was added to the list of critical raw materials identified in the Act, which are those considered
to be of high economic importance and high supply risk to the EU. “Manganese – Battery Grade” was
also identified as a strategic raw material, which recognizes its importance in meeting Europe’s
decarbonization efforts and in defence and space applications.
Europe currently relies on imports of high-purity manganese to meet 9 0% of its demand. 1 The
Company’s Chvaletice Project expects to deliver almost 50 Kt of high-purity manganese metal per year
when in full production, meeting approximately 25% of European demand and helping the EU reduce
its trade reliance on this strategic raw material.
• Chvaletice Project supports EU requirement for local extraction, processing, and use of recycled raw
materials. The Act sets out clear benchmarks for domestic mining, processing and recycling. By 2030,
of all critical raw materials consumed in the EU each year:
- 10% to be mined from European Union sources;
- 40% to be processed within the European Union; and
- 15% to come from recycled materials.
The Company believes the Chvaletice Project satisfies all three of these requirements. The Project’s
high-purity manganese products will be extracted and refined in the Czech Republic. Furthermore, as
the Project involves reprocessing manganese contained in historic mine waste to produce high-purity
manganese for the EV battery supply chain , the Project’s products may also qualify as recycled
materials. In addition, the Company has begun evaluation of re-purification of manganese rich by -
products from battery recycling.
• Chvaletice Project meets criteria for recognition as a Strategic Project. To strengthen the EU’s raw
materials value chain, CRMA establishes the concept of Strategic Projects , which are those that will
make a meaningful contribution to the security of the EU’s supply of strategic raw materials. Other
recognition criteria include:
1 Source: BMO Global Commodities Research.
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- Project is technically feasible and production volumes can be estimated with a sufficient level
of confidence.
- Project will be implemented sustainably: minimization of environmental impacts, use of
socially responsible practices, creation of quality jobs, and meaningful engagement with local
communities.
- Project will have cross-border benefits beyond the Member State concerned.
A European Critical Raw Materials Board (the "Board") will be established to evaluate applications for
recognition as a Strategic Project. The Board will submit an opinion to the Commission who will then
issue a decision on the recognition of a project as a Strategic Project within 60 days.
Of note for Euro Manganese, the Commission may prioritise the processing of applications for projects
active on specific stages of the value chain to ensure a balanced representation of Strategic Projects
for all strategic raw materials and to achieve the mining and processing benchmarks identified in the
Act (see above bullet). As the only known manganese resource in the EU at this time, the Company
believes the Chvaletice Project should be prioritised.
The Company intends to submit an application for recognition of the Chvaletice Project as a Strategic
Project as soon as the application process opens.
• Strategic Projects to qualify for priority permitting status. The CRMA outlines a “one stop shop”
where Member States will designate a single national authority responsible for facilitating and
coordinating the permit -granting process. Strategic Projects are to be given priority status and for
projects that entered the permitting process before being designated as Strategic Projects.
• Support for access to funding and facilitating offtake agreements for Strategic Projects. The CRMA
proposes to bring Member States and the Commission together with relevant financial institutions
and InvestEU to discuss and help coordinate access to funding for Strategic Projects and to facilitate
offtake agreements. Sources of capital identified in the Act include:
- The European Investment Bank ("EIB") and the European Bank for Reconstruction and
Development ("EBRD");
- Private financial institutions;
- Member State instruments and programs, including national banks and institutions; and
- Relevant European Union funding and financing programs.
Of note is the Commission has recently adapted State Aid rules to allow further flexibility for Member
States to grant aid , including for the production of critical raw materials related to key net -zero
technologies.
Dr. Matthew James, President & CEO of Euro Manganese, commented:
“Securing access to critical raw materials to support the energy transition has never been more important.
We welcome the European Commission’s proposed Critical Raw Materials Act and the opportunities it
presents for the Chvaletice Manganese Project. We remain focused on advancing the Chvaletice Project in
order to provide the European battery value chain with a low-carbon, secure source of supply of high -
purity manganese.
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 exploring an early -stage opportunity to produce battery -
grade manganese products in Bécancour, Québec.
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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 TSXV and the ASX, and is also traded on the OTCQX.
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, its North American growth strategy, 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 include, but are not limited to, statements regarding the
Company’s intentions regarding the development of the Chvaletice Project in the Czech Republic, the
ability of the Company to deliver high purity manga nese metal and meet European demand, the
desirability of the Company’s products, the Project’s ability to benefit from the proposed CRMA, the
Project’s eligibility to satisfy the requirements of the proposed CRMA, whether the Project’s high-purity
manganese products will qualify as recycled materials, the Company’s ability to engage in recycling
activities, and whether the Project will qualify as a Stra tegic Project , making it eligible for possible
prioritization in respect of permitting and support for access to funding and for facilitating offtake
agreements.
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
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results of the Company to differ materially from those d iscussed 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 re sults or events to differ materially from current expectations include,
among other things: delays, changes, or political challenges to the proposed CRMA, the ability to develop
adequate processing capacity; the availability and reliability of equipment, facilities, and suppliers
necessary to complete development; the cost of consumables and extraction and processing equipment;
risks and uncertainties related to the ability to obtain, amend, or maintain necessary licenses, or permits,
risks related to acquisition of surface rights; 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 and uncertainties related to the accuracy of mineral resource and
reserve estimates, the price of the Company’s high-purity manganese products, power supply sources and
prices, and diminishing quantities or grades of mineral resources and reserves; changes in project
parameters as plans continue to be refined; risk s related to global epidemics or pandemics and other
health crises, including the impact of the coronavirus (COVID -19); availability and productivity of skilled
labour; risks and uncertainties related to interruptions in production; unforeseen technologica l 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; risks relating to variations in the mineral content and grade within
resources from that predicted; variations in rates of recovery and extraction; 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 m ade 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; the availability of personnel,
machinery, and equipment at estimated pri ces, in good order, and within estimated delivery times;
currency exchange rates; manganese sales prices and exchange rates assumed; growth in the manganese
market; appropriate discount rates applied to the cash flows in economic analyses; tax rates and ro yalty
rates applicable to the proposed operations; the availability of acceptable financing for the Chvaletice
Project and for continued operations ; anticipated extraction losses and dilution; success in realizing
proposed operations in the Czech Republic and for the Company’s North American growth strategy; 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 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 statem ent. 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.