Euro Manganese Orders High-Purity Manganese Products Demonstration Plant for Delivery in Summer of 2021 and Provides Update
Vancouver, Canada (November 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:
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:
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$14,320).
Purchase from Sprava Nemovitosti Kirchdorfer CZ s.r.o. of a 49,971 m² parcel of land, including a rail spur extension that will provide additional room and flexibility for the definitive Chvaletice commercial plant layout. The cost of the land is CZK 18,739,125 (CAD$ 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.
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.
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 H2 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
Download news release here:
About Euro Manganese:
Euro Manganese Inc. is a Canadian resource developer, whose principal focus is the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-processing a significant anthropogenic 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 other high-technology applications.
Authorized for release by the CEO of Euro Manganese Inc.
Euro Manganese Inc.
Marco A. Romero
President & CEO
(604)-681-1010 ext. 101
Vice President, Corporate Development & Corporate Secretary
(604)-681-1010 ext. 105
1500 – 1040 West Georgia Street,
Vancouver, British Columbia, Canada, V6E 4H8
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