Source: Euro Manganese
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  • Battery materials company Euro Manganese (EMN) will buy back and end a 1.2 per cent royalty interest in the Chvaletice Manganese Project, in the Czech Republic
  • The company has purchased the interest for US$4.5 million (around A$5.8 million)
  • Based on a 2019 preliminary economic assessment (PEA), eliminating the royalty will save US$91.1 million (around A$117 million) in expenditures over Chvaletice’s 25-year mine life
  • The elimination will also increase the after-tax net profit value of the project by US$25.3 million (approximately 4 per cent or A$32.6 million)
  • On the market this morning, Euro is up 4.76 per cent and is trading at 55 cents per share

Euro Manganese (EMN) will purchase and end a 1.2 per cent royalty interest in the Chvaletice Manganese Project.

The battery materials company has purchased the interest for US$4.5 million (A$5.8 million).

Based on a 2019 preliminary economic assessment (PEA), eliminating the royalty will save US$91.1 million (around A$117 million) in expenditures over Chvaletice’s 25-year mine life.

The elimination will also increase the after-tax net profit value of the project by US$25.3 million (approx. A$32.6 million).

Euro’s main focus is on advancing the development of Chvaletice. The proposed project entails reprocessing a significant manganese deposit in mine tailings from a decommissioned mined in the Czech Republic.

“Based on the 2019 PEA results and assumptions, this royalty buy-out enhances the project’s economics and the payment terms allow the company substantial financial flexibility,” Euro Manganese CEO Marco Romero said.

“We continue to evaluate other potential value-enhancing opportunities for the project.”

On the market this morning, Euro is up 4.76 per cent and is trading at 55 cents per share at 10:55 am AEST.

EMN by the numbers
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