Name of the Project
Chvaletice manganese project.

Location
Czechia.

Project Owner/s
Canada-based Euro Manganese.

Project Description
A preliminary economic assessment (PEA) has demonstrated the compelling potential of the Chvaletice project.

The PEA is based on the recycling of a 27-million-tonne measured and indicated tailings resource (98.3% on the measured category), with a combined grade averaging 7.33% manganese, without the requirement of any hard-rock mining, crushing or milling.

Envisaged is a mine with a 25-year operating life producing 1.19-million tonnes of high-purity electrolytic manganese metal, two-thirds of which is expected to be converted into high-purity manganese sulphate mono­hydrate powder. Saleable product includes 404 100 t of high-purity electrolytic man­gan­ese metal and 2.35-million tonnes of high-purity manganese sulphate monohydrate powder.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at a 10% real discount rate, of $781.6-million and an internal rate of return of 25.2%, with a 4.5-year payback.

Capital Expenditure
Initial capital requirements are estimated at $403.9-million.

Planned Start/End Date
Not stated.

Latest Developments
Euro Manganese has entered into an C$8.5-million strategic investment agreement with multilateral lender the European Bank for Reconstruction and Development (EBRD) to support development of the Chvaletice manganese project.

As part of the due diligence process, the EBRD engaged an independent, international natural resources consultancy to undertake a technical and environmental review of the Chvaletice project.

The investment will result in the private placement of 17.8-million common shares of Euro Manganese to be issued to EBRD at C$0.4775 a share, after which the EBRD will hold about 4.5% of the company’s common shares on a nondiluted basis.

Euro Manganese and EBRD will also enter into a project support agreement whereby, subject to certain conditions, the EBRD will be granted rights that allow for participation in future financings to maintain its pro rata equity interest in Euro Manganese.

Further, the EBRD’s Environmental and Social Policy is progressive and in keeping with international best practices, which Euro Manganese has met. Euro Manganese has undertaken to maintain compliance with the EBRD's environmental, social and economic inclusion and equal opportunity standards.

Key Contracts, Suppliers and Consultants
Tetra Tech Canada (PEA); CINF Engineering (comprehensive process design, plant engineering, equipment selection and testing); Changsha Research Institute for Mining and Metallurgy (metallurgical testwork, process design, product development and pilot plant testing); Bilfinger Tebodin Czech Republic (Czech and European cost estimation, localisation and environmental services); GET (geology and sampling, environmental and tailings extraction planning); and Sudop (railway infrastructure design study).

Contact Details for Project Information
Euro Manganese, tel +1 604681 1010 or email info@mn25.ca.