The second tranche of the offering, consisting of subscriptions by related parties of the company of 4.26 million shares at the same prices for aggregate gross proceeds of C$487,780, is expected to close on or about May 5, 2020.
Tranche-two is subject to approval by the company’s shareholders as required by Listing Rule 10.11.5 of the Australian Securities Exchange and EMN has called a special meeting of shareholders for May 1, 2020, for this purpose.
Funds to advance manganese project
Placement proceeds will be used to further advance the Chvaletice Manganese Project in the Czech Republic, including advancing the feasibility study and preparation of the Environmental Impact Assessment submission as well as for other general corporate purposes.
Fees payable by the company in connection with the offering are a management fee, payable in cash of 1% of the aggregate gross proceeds from the offering.
Shares issued pursuant to the first tranche of the offering are subject to a four-month and one day statutory hold period expiring on August 7, 2020.
Stock option grant
Euro Manganese will also grant stock options to an officer, an employee and a consultant to purchase up to an aggregate of 350,000 shares.
These options are exercisable for a term of 10 years at an exercise price of C25 cents per share and vest one-third on the date of grant and one-third on each of the first and second anniversaries of the date of grant.
The Chvaletice project will recycle historical mine tailings that host Europe’s largest manganese deposit and result in environmental remediation of this site.
The European Union is emerging as a major electric vehicle manufacturing hub and EMN's goal is to become the preferred supplier of sustainably-produced ultra-high-purity manganese products for the lithium-ion battery industry and for producers of specialty steel, high-technology chemicals and aluminium alloys.