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Euro Manganese Announces Offtake Term Sheet with Verkor
VANCOUVER, British Columbia, Jan. 11, 2023 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (the "Company" or "EMN") i
About this update from Euro Manganese, Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 11, 2023 (GLOBE NEWSWIRE) -- Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF; Frankfurt: E06) (the \"Company\" or \"EMN\") is pleased to announce it has entered into an offtake term sheet (the \"Term Sheet\") with Verkor, a low-carbon battery manufacturer based in Grenoble, France, for the sale of high-purity manganese sulphate monohydrate (\"HPMSM\") from the Company’s Chvaletice Manganese Project (\"Chvaletice\" or the \"Project\") in the Czech Republic. The Term Sheet is non-binding. The parties intend to enter an offtake agreement, where upon the pricing mechanism and minimum tonnages outlined in the Term Sheet, would become binding upon the signing by the parties of a legally binding offtake agreement, together with any other agreements necessary to give effect to the Project. The offtake tonnages are equivalent to a percentage of the Company’s annual HPMSM production on a take or pay basis. Deliveries are to commence from first production, expected to be in 20271, for an initial tenure of eight years with potential for renewal. The commencement of the initial term shall be subject to successful qualification of the Company’s HPMSM from the Chvaletice Demonstration Plant in Verkor’s supply chain. Pricing will be based on an index-adjusted western benchmark price, representing HPMSM from a secure, traceable, local European supply source, with excellent ESG credentials and corelates to the Chvaletice HPMSM CO2 footprint, which is forecast to be approximately one-third of the incumbent Chinese industry. The price for Chvaletice HPMSM will rise and fall proportionally with the movement of a published HPMSM index, on a rolling three-month quotational period. Pricing is subject to a floor price which ensures the Company will meet its project financing debt covenants. This Term Sheet is the Company’s first term sheet for a long-term offtake. The Company anticipates more term sheets or agreements will follow in the near term as a result of the offtake tender process, which is currently underway. Dr. Matthew James, President & CEO of Euro Manganese, commented: “This is a major milestone for Euro Manganese and for the European battery value chain. I am immensely proud of the team and their hard work in negotiating the first long-term offtake term sheet, with a pricing structure, from a Wes...