Euro Manganese Collaborates with Blue Grass Chemical
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Euro Manganese Announces Offtake Term Sheet with Blue Grass Chemical Specialties
Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQB: EUMNF; Frankfurt: E06) is pleased to announce it has entered into an offtake term sheet with Blue Grass Chemical Specialties for the sale of high-purity manganese metal from the Company’s Chvaletice Manganese Project in the Czech Republic.
Partnership Overview
Blue Grass Chemical, based in New Albany, Indiana, boasts over five decades of expertise in producing specialty chemicals across various industries. Their product line includes manganese nitrate, vital for manufacturing manganese dioxide and manganese oxides—critical components in battery production, particularly in lithium-ion batteries, which are used in electric vehicles and portable electronic devices. The high-quality manganese nitrate produced plays a significant role in enhancing battery performance and longevity.
Key Highlights of the Agreement
The term sheet signifies the intention to create a binding offtake agreement, establishing a pricing mechanism and tonnage requirements. The offtake tonnages will account for a portion of the Project’s anticipated high-purity electrolytic manganese metal (HPEMM) production. Furthermore, the agreed pricing in the term sheet is structured to satisfy the Project’s debt finance banking covenants.
Production and Delivery Plans
Deliveries are set to initiate from the first production, gradually increasing in alignment with the Project’s production capacity, commencing with an initial term of seven years, with options for renewal. The initiation of this term will depend on the successful qualification of the Company’s HPEMM within the supply chain of Blue Grass Chemical. The qualification process will begin with HPEMM sourced from the Project’s Demonstration Plant, where samples are currently undergoing evaluation.
Pricing Structure
The pricing for the Project’s HPEMM will be based on a take-or-pay agreement, reflecting an index-adjusted western benchmark price. This benchmark is crucial as it represents high-quality, secure, and traceable supply sources, crucial for compliance with regulations such as the Inflation Reduction Act. Environmental, sustainability, and governance (ESG) considerations core to the pricing include ensuring a low CO2 footprint.
Future Demand for High-Purity Manganese
As noted by Dr. Matthew James, President & CEO of Euro Manganese, the growing momentum for the demand for high-purity manganese from the Chvaletice Project is noteworthy. The new offtake agreement with Blue Grass Chemical reflects both the necessity for high-purity manganese in existing operations and the potential for increased tonnages as new opportunities arise. The emphasis on flexibility in manufacturing processes allows for a diverse customer base.
Executive Insights
Mr. Matthew Brenner, President of Blue Grass Chemical Specialties, expressed enthusiasm for utilizing Euro Manganese’s high-purity manganese, emphasizing the company’s commitment to not only providing products but also support to customers in various sectors, enhancing operational goals by optimizing the use of manganese nitrate.
Company Profiles
Euro Manganese is committed to advancing its position as a leading producer of high-purity manganese for the electric vehicle market. The Chvaletice Manganese Project represents a unique opportunity to recycle and repurpose old tailings from a decommissioned mine, making it the only considerable source of manganese within the European Union. This strategic positioning aims to support the burgeoning battery supply chain critical for the transition to a sustainable, low-carbon economy.
Blue Grass Chemical Specialties
With more than 55 years in business, Blue Grass Chemical focuses on sustainability while servicing multiple industries, including agriculture, electronics, and the electric vehicle battery sector. They produce manganese nitrate, essential for various applications, particularly in the production of nickel manganese cobalt (NMC) batteries used extensively in electric vehicles.
Contact Information
Inquiries for Euro Manganese:
Dr. Matthew James
President & CEO
mjames@mn25.ca
Inquiries for 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, crucial for battery production, establishing 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.
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