11:54 AM EDT, 08/26/2024 (MT Newswires) -- Euro Manganese ( EMNAF ) said Monday it signed an offtake term sheet with Indiana-based Blue Grass Chemical Specialties for the sale of high-purity manganese metal from the Chvaletice manganese project in the Czech Republic.

Euro Manganese ( EMNAF ) in a statement said offtake tonnages represent a portion of the project's planned high-purity electrolytic manganese metal production. Pricing will be designed to meet the project's debt finance banking covenants.

The company said deliveries will commence from first production and will ram up with the project's production capacity for an initial term of seven years with potential for renewals.

"The fact that Blue Grass Chemical requires high-purity manganese metal for their existing operations, and potential for increased tonnages as they evaluate new opportunities, demonstrates the value of designing our flow sheet to produce both high-purity manganese metal and sulphate at Chvaletice, thus giving customers optionality for their manufacturing processes," said Matthew James, president and CEO of Euro Manganese ( EMNAF ).

Euro Manganese ( EMNAF ) shares were last seen up $0.005 to $0.045 on the TSX Venture Exchange.