Euro Manganese Announces Offtake Term Sheet with Blue Grass Chemical Specialties
Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQB: EUMNF; Frankfurt: E06) is excited to announce that it has signed an offtake term sheet with Blue Grass Chemical Specialties. This agreement involves the sale of high-purity manganese metal sourced from the Company’s Chvaletice Manganese Project located in the Czech Republic.
Partnership Overview
Blue Grass Chemical, headquartered in New Albany, Indiana, has over fifty years of experience in creating specialty chemicals for a variety of industries. Their product offerings include manganese nitrate, which is essential for producing manganese dioxide and manganese oxides—key materials in battery manufacturing, especially for lithium-ion batteries used in electric vehicles and portable electronics. The high-quality manganese nitrate they produce significantly improves battery performance and lifespan.
Key Highlights of the Agreement
This term sheet indicates the intention to establish a binding offtake agreement, which will define a pricing mechanism and specify tonnage requirements. The agreed tonnages will represent a portion of the anticipated production of high-purity electrolytic manganese metal (HPEMM) from the Project. Additionally, the pricing outlined in the term sheet is designed to meet the Project’s debt financing banking covenants.
Production and Delivery Plans
Deliveries are expected to commence with the first production, gradually ramping up in accordance with the Project’s production capacity. The initial term will last seven years, with options for renewal. The start of this term will depend on the successful qualification of the Company’s HPEMM within Blue Grass Chemical’s supply chain. This qualification process will kick off with HPEMM sourced from the Project’s Demonstration Plant, where samples are currently being evaluated.
Pricing Structure
The pricing for the Project’s HPEMM will follow a take-or-pay agreement, which is based on an index-adjusted western benchmark price. This benchmark is vital as it signifies high-quality, secure, and traceable supply sources, ensuring compliance with regulations like the Inflation Reduction Act. Environmental, sustainability, and governance (ESG) considerations integral to the pricing include maintaining a low CO2 footprint.
Future Demand for High-Purity Manganese
According to Dr. Matthew James, President & CEO of Euro Manganese, the increasing demand for high-purity manganese from the Chvaletice Project is significant. The new offtake agreement with Blue Grass Chemical highlights the need for high-purity manganese in current operations and the potential for increased tonnages as new opportunities emerge. The focus on flexibility in manufacturing processes allows for a broad customer base.
Executive Insights
Mr. Matthew Brenner, President of Blue Grass Chemical Specialties, expressed excitement about using Euro Manganese’s high-purity manganese. He emphasized the company’s dedication to not only delivering products but also providing support to customers across various sectors, thereby enhancing operational goals through optimized use of manganese nitrate.
Company Profiles
Euro Manganese is dedicated to solidifying its role as a leading producer of high-purity manganese for the electric vehicle market. The Chvaletice Manganese Project offers a unique opportunity to recycle and repurpose old tailings from a decommissioned mine, making it the only significant source of manganese within the European Union. This strategic positioning is aimed at bolstering the growing battery supply chain essential for transitioning to a sustainable, low-carbon economy.
Blue Grass Chemical Specialties
With over 55 years in operation, Blue Grass Chemical emphasizes sustainability while serving multiple industries, including agriculture, electronics, and the electric vehicle battery sector. They produce manganese nitrate, which is crucial for various applications, especially in the manufacturing of nickel manganese cobalt (NMC) batteries that are widely used in electric vehicles.
Contact Information
For inquiries regarding Euro Manganese:
Dr. Matthew James
President & CEO
mjames@mn25.ca
For inquiries regarding Blue Grass Chemical:
Matthew Brenner
President
mbrenner@bluegrasschemical.com
Frequently Asked Questions
What is the significance of the offtake term sheet with Blue Grass Chemical?
The term sheet facilitates sales of high-purity manganese metal, which is crucial for battery production, and establishes a binding agreement on pricing and tonnage.
How will the pricing structure work for the manganese metal?
The pricing will be based on a take-or-pay structure linked to an index-adjusted western benchmark price, ensuring compliance with ESG standards.
What is the Chvaletice Manganese Project?
The Chvaletice Manganese Project aims to recycle old tailings for manganese production, making it a vital source within the European Union for battery supply chains.
What are the benefits of high-purity manganese in battery production?
High-purity manganese enhances battery performance and longevity, making it a key component for electric vehicle and electronic device batteries.
Who can I contact for more information regarding Euro Manganese?
For more information, inquiries should be directed to Dr. Matthew James at mjames@mn25.ca.
