Euro Manganese Addresses Trading Halt on ASX for Non-Australian Shareholders and Investors
VANCOUVER, British Columbia, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V/ASX: EMN) (the "Company" or "EMN") wishes to address, for the benefit of
its non-Australian shareholders and investors, the reasons for the trading halt on the Australian Securities Exchange ("ASX") and its response to the price query letter received
from the ASX in connection with the trading of EMN’s CHESS Depositary Interests ("CDIs", with each CDI representing one Common Share) during Wednesday, September
Following the unusually high volume and price levels traded on the ASX during Wednesday’s trading session, the ASX paused trading in the Company’s CDI’s, contacted the Company and advised it to request a voluntary trading halt in order to allow the ASX to issue a price query letter that the Company was advised would be issued.
In response to the ASX’ price query letter, the Company confirmed that it was not aware of any information concerning it that has not been announced to the market which, if known by some market participants, could explain the increase in that day’s share price and volume; and that it was in compliance with the ASX Listing Rules, and in particular, Listing Rule 3.1 entitled Continuous Disclosure.
Further, the Company’s response to the ASX included the following:
“Euro Manganese considers that the increase in share price in today’s trading may be a reaction to a presentation held Tuesday afternoon Pacific Time, 22 September 2020 by Tesla Inc.’s CEO, Elon Musk, at the company’s 2020 Annual Meeting of Stockholders & Battery Day. During this presentation, Mr. Musk disclosed several technological advances it proposes to implement to materially lower the cost of producing lithium-ion batteries and electric vehicles, including Tesla’s plan to begin manufacturing at a very large scale an innovative type of lithium-ion battery with a cathode that contains around 33% manganese, made directly from manganese metal. Tesla also disclosed that it intends to build its own cathode factory and to purchase raw materials directly from mining companies. Until now, Tesla had used EV batteries manufactured by third parties, such as Panasonic, using principally an NCA formulation, which contains no manganese. The introduction of manganese in Tesla batteries is expected to result in a material increase in high-purity manganese demand. The Tesla presentation can be viewed at: https://www.tesla.com/2020shareholdermeeting”