Euro Manganese Announces Closing of Second Tranche of Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, May 10, 2021 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V / ASX: EMN) (the “Company” or “EMN”) is pleased to announce that, following the approval by its shareholders at a special meeting held on May 5, 2021, it has closed the second tranche (the “Tranche 2 Placement”) of the private placement (the “Offering”) announced on March 22, 2021.

The Tranche 2 Placement was comprised of 8,333,334 CHESS Depositary Interests (“CDIs”, with each CDI representing one common share (each a “Share”)) at a price of AUD$0.60 per CDI for aggregate gross proceeds AUD$5 million (approximately CAD$4.8 million). The Tranche 2 Placement consisted of subscriptions for securities issued in excess of the number permitted to be issued by the Company without obtaining prior shareholder approval under Listing Rule 7.1 of the Australian Securities Exchange (“ASX”), such subscriptions being subject to approval by the Company’s shareholders pursuant to Listing Rule 7.1.

Aggregate gross proceeds under the Offering were AUD$30.0 million (CAD$29.0 million). 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 operation of the Demonstration Plant, completing the Project’s permitting and feasibility study, for certain scheduled land acquisition payments and for general corporate purposes.

The Offering was anchored by a strategic investor and an ESG-focused fund, and also received strong support from several existing institutional shareholders. The Offering also introduced two new institutional investors with a strong positive view on ESG projects and the market opportunity for high-purity manganese in Europe.

Canaccord Genuity (Australia) Limited (“Canaccord”) acted as Lead Manager and Bookrunner for the Offering, with Bacchus Capital Advisers Limited (“BCAL”) acting as financial adviser to the Company. Fees payable in cash by the Company in connection with the Offering consisted of payments of AUD$1,222,500 (approximately CAD$1,181,750) to Canaccord and AUD$277,500 (approximately CAD$268,500) to BCAL. Additionally, the Company issued 2,500,000 broker warrants (“Broker Warrants”) to Canaccord. The Broker Warrants are exercisable any time prior to May 10, 2023 and have an exercise price of CAD$0.58 per Share.