08:37 AM EST, 03/06/2025 (MT Newswires) -- Euro Manganese ( EUMNF ) said on Thursday that it is raising $5.9 million in a conditional placement of common shares and CHESS Depositary Interests (CDI) to advance the Chvaletice manganese project in the Czech Republic.

The funds will be used to engage with customers to secure additional offtake term sheets and strategic investments.

"This critical financing enables the Company to pursue certain key milestones and advance project development, including securing offtake agreements and additional offtake term sheets, and pursuing an investment from a strategic investor, the operation of the demonstration plant to market our product to potential customers and to advance permitting," said Martina Blahova, the interim CEO.

The offering is priced at $0.036 pre-consolidation per new security, including a subscription from the European Bank for Reconstruction and Development of about $3.1 million. This will result in the bank increasing its pro forma ownership in the Company to 19.99%.

Under the equity raising, investors will receive one warrant to purchase an additional common share or CDI for every one new security subscribed for, with an exercise price of $0.045 per warrant and an expiry date 18 months.

In addition to the conditional placement, Euro Manganese ( EUMNF ) said it intends to offer eligible existing shareholders the opportunity to participate in a share purchase plan to raise up to a further $3.6 million at the equity raising price.

Meanwhile, Euro Manganese ( EUMNF ) appointed Rick Anthon as chairman of the board of directors.

John Webster, who has served as chairman since 2020, will remain in the role until Anthon's formal appointment following completion of the conditional placement. Webster will continue as non-executive director after Anthon's appointment.