【Ferro-alloys.com】:Euro Manganese (TSXV, ASX: EMN) announced on Tuesday that it has signed definitive agreements with Orion Resource Partners Group for $100 million financing to advance the development of the Chvaletice project in the Czech Republic.

The funding is split into two $50 million components: a $50 million loan facility, convertible into a 1.29-1.65% royalty on project revenues and another $50 million in exchange for a 1.93-2.47% royalty on project revenues following a final investment decision by the company’s board of directors and other conditions typical for this type of financing.

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The Chvaletice project in the Czech Republic is the only sizeable, classified resource of manganese in the European Union. The project entails re-processing manganese deposits contained in waste (tailings) from a decommissioned mine that operated between 1951 and 1975.

Euro Manganese plans to convert the carbonate to high-purity manganese metal and sulphate and send them to its planned processing facility in Quebec, where they will be converted into a liquid sulphate. The site is adjacent to two proposed cathode plants, allowing the liquid sulphate to be piped directly into the cathode production processes.

Shares of Euro Manganese surged 71% by 12:10 p.m. EDT in Toronto. The company has a market capitalization of C$64 million ($47 million).

• [Editor:Alakay]