Euro Manganese Announces Closing of First Tranche of Private Placement, First EIT InnoEnergy Investment, Extension of Czech Tax Incentive Timeline, and Stock Option Grants

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Highlights

• Euro Manganese has closed the first tranche of its recent private placement for gross proceeds of AUD$25 million (approx. CAD$24.2 million). The second tranche to close in early May 2021.
  
• The Company has received an initial investment from EIT InnoEnergy of €62,500 (approx. CAD$92,850), the first of three installments with an aggregate value of €250,000.
  
• The Company’s eligibility timeline for approx. CAD$27 million in investment incentives in the form of tax credits that were granted by the Czech Republic’s Ministry of Industry and Trade has been extended to 2025.
  
• The Company has granted stock options to purchase 2,350,000 shares at CAD$0.61per share.
  

VANCOUVER, British Columbia, March 30, 2021 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V / ASX: EMN) (the "Company" or "EMN") is pleased to announce the closing of the first tranche of the AUD$30 million (approximately CAD$29 million) private placement (the "Offering"), the first of three investments by EIT InnoEnergy, an extension to its eligibility timeline on Czech investment incentives, and a grant of stock options.

Closing of First Tranche of Offering

The Company has closed the first tranche of the Offering, announced on March 22, 2021, which consisted of the sale and issuance of 41,666,666 CHESS Depositary Interests ("CDIs", with each CDI representing one common share (each a "Share")) at a price of AUD$0.60 per CDI for gross proceeds of AUD$25 million (approximately CAD$24.2 million).

The second tranche of the Offering, consisting of 8,333,334 CDIs at the same issue price is expected to close in May 2021, subject to and following approval by the Company’s shareholders as required by Listing Rule 7.1 of the Australian Securities Exchange ("ASX").

Net proceeds of the Offering will be used by the Company to advance its Chvaletice Manganese Project in the Czech Republic (the "Project"). Specifically, proceeds will be used for completing the installation and commissioning of the Company’s high-purity manganese demonstration plant (the "Demonstration Plant"), initial year of operating costs of the Demonstration Plant, completing the Project’s permitting and feasibility study, for certain scheduled land acquisition payments and for general corporate purposes.