Highlights:
- Demonstration Plant order placed. Procurement and fabrication to commence immediately. Sets stage for initiation of Chvaletice high-purity manganese products supply chain qualification process with multiple prospective customers;
- All land for Chvaletice commercial plant now secured, with three additional agreements for land purchase and leases, including a second rail line connection;
- Demonstration Plant permitted as proposed. Requires no separate Environmental Impact Assessment (EIA) or permitting, other than a building permit;
- Dry stacking tailings operation approved without the introduction of additional fees.
Mr.
“We are delighted to report that we have ordered our Demonstration Plant for the Chvaletice Manganese Project. Once commissioned, we expect to begin the test phase of the supply chain qualification process for our high-purity manganese products with multiple potential customers. We have also continued to make steady progress on the regulatory/permitting front, following our filing of the EIA notification in late June. We are also pleased to report the acquisition of three additional, but critically important pieces of land that complete our land assembly for the proposed Chvaletice commercial plant site. These provide additional room and flexibility for the plant layout and will provide us with a second rail connection, through a neighbouring rail siding, to the major line that runs adjacent to our Project.”
Demonstration Plant (“DP”)
The DP is a 7-times scale up of the successful pilot plant that the Company operated in 2018. It is designed as a locked-cycle, semi-batch, manually operated system of interconnected modules that can be utilized as a circuit or as stand-alone components. The DP is intended to replicate the entire process flowsheet proposed in the Project’s 2019 Preliminary Economic Assessment. It will produce around 32 kg/day of high-purity electrolytic manganese metal ("HPEMM"), that can be converted into approximately 100 kg/day of dry crystalline high-purity manganese sulphate monohydrate ("HPMSM").
The DP is scheduled to be delivered at the Chvaletice site during the summer of 2021. It will be erected and operated in two existing industrial buildings adjacent to the Chvaletice tailings site, on land that EMN agreed to purchase in
As previously announced, the Company awarded a fixed-price, turnkey contract for the building, delivery and commissioning of the DP to
To date, approximately 55% of the DP’s planned first year production of HPEMM and HPMSM has been allocated to five prospective customers for testing, in the context of their supply chain qualification process. Discussions are ongoing with additional potential customers for the allocation of DP products for supply chain qualification. These include several chemical, battery and automotive companies.
Upon successful completion of the initial supply chain qualification process by these parties, and subject to a production decision being made based on the results of a feasibility study, the Company plans to enter into long-term commercial offtake arrangements for the supply of its high purity manganese products.
Completion of
The Company is pleased to announce that it has agreed to acquire rights to three additional strategic parcels of land, competing its land assembly for the proposed Chvaletice commercial plant:
- Purchase from Sev.en EC, a.s., the owner of the Chvaletice power plant, a 1,952 m² section of land encompassing Rail Spur no. 1, through which the proposed Chvaletice process plant will be serviced and connected to existing rail infrastructure. This acquisition is particularly important for the Project, as it provides the company with a second rail connection, through the existing rail siding of the neighboring power plant. This is expected to provide greater logistical capacity and flexibility for the project. The cost of the land is CZK 252,762 (approximately
CAD$14,320 ). - Purchase from Sprava Nemovitosti Kirchdorfer CZ s.r.o. of a 49,971 m² parcel of land, including a rail spur extension that will provide additional room and flexibility for the definitive Chvaletice commercial plant layout. The cost of the land is CZK 18,739,125 (
CAD$1,098,844 ) and can be paid in five 7.5% annual installments (app.C$80,000 ), followed by the remaining balance of approximatelyC$698,844 in the final year. - Lease from Galmet Trade, spol s.r.o. of a 3,504 m² right-of-way for a period of 30 years to allow the straightening of a proposed conveyor route. Annual rental will be CZK 60,000 (
CAD$3,000 ) and the Company will retain an option to purchase this land during 2020 and 2021.
Regulatory/Permitting:
a) Environmental Impact Assessment Notification
As previously reported, the Company filed the Environmental Impact Assessment Notification with respect to the
The impacts of the Project on the environment, public health, social and cultural values, in the area of interest, were assessed and evaluated according to Act 100/2001 Coll., which is based on Directive 2011/92/EU of the
The environmental impact assessment of the Project is conducted in two stages [Stage 1 - EIA Notification (already filed) and Stage 2 – Final EIA (expected to be submitted in Q2 2021] in order to identify significant impacts early on in the project planning phase to ensure that recommendations from the relevant authorities and municipalities can be incorporated into the development and operating plans, the final EIA, and in the definitive feasibility study that is currently ongoing.
b) Residue Storage
The Company also has received confirmation from the
Contracting of
The agreement between the Company and The Armchair Trader is for a period of six months commencing
Selected past EMN news releases for further background:
- Natura 2000 Positive Environmental Ruling: https://www.mn25.ca/post/euro-manganese-receives-significant-environmental-ruling
- Filing of EIA Notification: https://www.mn25.ca/post/euro-manganese-to-file-chvaletice-manganese-projectenvironmental-impact-assessment-notification
About
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Forward Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or the Project to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
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Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed under “Risks Notice” and elsewhere in the Company’s MD&A for the year ended
The forward-looking statements contained in this news release are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
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