Euro Manganese has amended its financing facility with Orion Resource Partners, converting US$23.5 million in outstanding debt and accrued interest into a royalty structure on the Chvaletice Manganese Project in the Czech Republic — a move designed to simplify the company’s capital structure and provide greater flexibility as it advances the project through permitting, financing and market conditions.
Under the revised agreement, the outstanding loan and accrued interest will automatically convert into a royalty once a fundraising condition is met by a date acceptable to Orion, fully discharging the company’s repayment obligation. The revised structure removes time-based milestones contained in previous versions of the agreement. Following conversion, the royalty will range from 2.29% to 2.46% of project revenues, calculated quarterly on a sliding scale linked to achieved prices for the project’s high-purity manganese products.
CEO Martina Blahova said the restructuring was a constructive outcome. “By converting the existing facility into a royalty, we are simplifying our capital structure, improving financing flexibility and positioning the company to advance the Chvaletice Manganese Project through its next stage of development,” she said. Chairman Rick Anthon described the revised arrangement as reflecting the strength of the company’s relationship with Orion, providing a clearer and simpler capital structure heading into the next development phase.
Orion retains offtake rights covering 20% to 22.5% of the project’s high-purity manganese production for ten years from first delivery, with offtake terms matched to commercial terms achieved by the company to meet bankability requirements. The original Orion funding package, announced in November 2023, was structured as US$100 million split into two US$50 million components.
The Chvaletice project aims to reprocess historic mine tailings to produce high-purity electrolytic manganese metal and high-purity manganese sulphate monohydrate — battery materials in growing demand for EV cathode manufacturing.
