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Euro Manganese (TSXV:EMN) increases private placement to $4M

Mining
TSX:EMN
16 July 2020 12:18 (EDT)

Euro Manganese (EMN) has increased its previously announced private placement from C$3.85 million to $4.04 million.

Under the terms of an original placement announced on July 6, the Vancouver-based company had sought to issue a total of 11.97 million common shares and 51.14 million CHESS Depositary Interests (CDIs) at a price of 6.1 cents and 6.5 cents, respectively.

However, the revised placement will see an increase in the number of issued CDIs to a total of 54.22 million, with the number of shares offered to remain the same.

Euro Manganese has already closed an initial tranche of the offering, which was completed on July 9, issuing an aggregate of 5.15 million shares and 16.34 million CDIs for gross proceeds of around $1.31 million.

The second tranche of 6.82 million common shares and 37.87 million CDIs, if fully acquired, will generate $2.73 million. However, this remains subject to shareholder approval under the rules of the Australian Securities Exchange, which will be sought at a meeting in August this year.

The proceeds raised under the placement will be used to progress the company’s Chvaletice Manganese Project in the Czech Republic, which will include advancing a feasibility study and an environmental impact assessment.

Through its subsidiary, Mangan Chvaletice s.r.o., Euro Manganese holds a 100 per cent interest in the project, which is strategically located in the heart of Europe roughly 90 kilometres east of Prague.

According to a a number of reports published in early 2019, the Chvaletice Manganese Project has a combined measured and indicated resource of 26.96 million tonnes, grading 7.33 per cent total manganese and 5.86 per cent soluble manganese.

Euro Manganese (EMN) is currently steady at six cents per share at 11:55am EDT.

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