Resources Top 4: Euro Manganese bags US$100m of ‘transformative’ funding
Here are the biggest resources winners in early trade, Wednesday November 29.
This $38m market capped Canadian manganese stock hasn’t had the best time of things since we mentioned it in this column in mid-August … although we’re pretty sure that’s not our fault. Back then, you see, it was a $52m market capper.
But… its fortunes now look to be making a u-turn in the right direction, with the stock bursting up +45% and making news just about everywhere on the back of a significant project financing deal with $8.2 billion global asset management firm Orion Resource Partners.
It’s a US$100m non-dilutive funding package to advance the development of the Chvaletice manganese project in the Czech Republic – the company’s primary focus.
We are thrilled to share that we've secured US$100 million in non-dilutive financing from Orion Resource Partners to advance the development of our #ChvaleticeProject in the Czech Republic.https://t.co/a56kpAKQeF#HighPurityManganese #EuroManganese #EVs #Orion #investors pic.twitter.com/2ijOxEGxV4
— Euro Manganese (@EuroManganese) November 28, 2023
The company is battery materials focused, with manganese a lesser-known (than lithium and nickel anyway) raw material required as a stabilising component in the cathodes of nickel-manganese-cobalt (NMC) lithium-ion batteries used in electric vehicles.
The funding is split into two $50 million tranches, including a $50 million loan facility, convertible into a 1.29-1.65% royalty on project revenues, and another $50m in exchange for a 1.93-2.47% royalty on project revenues following a final investment decision by the company’s board.
Dr Matthew James, President & CEO of Euro Manganese, said:
“This is a transformative transaction for Euro Manganese… The non-dilutive, tranche structure minimises cost of funds and reduces future project financing requirements.
“This further validates the robust nature of the Chvaletice Project and our team’s ability to deliver this strategic battery raw material project for Europe to the highest of standards.”
EMN share price
Golden news for this junior Queensland-based gold/copper/silver hunter today, which has raised $1.8m via a placement/entitlement offer – plus another $1.5m from mining royalty firm Taurus – to advance the Dittmer gold mine to production.
Taurus backs Ballymore's gold ambitions.
Plans to redevelop one of the highest-grade gold miners in Queensland have received the backing of Taurus Funds Management as part of a circa A$11 million capital raising by Ballymore Resources.https://t.co/SGY4TaXmYN
— Ballymore Resources (@BallymoreRes) November 28, 2023
In late October, Ballymore announced “extremely high-grade gold results” with individual assays up to 2206ppb Au (2.2g/t) returned from soil sampling program over its Dittmer prospect, some 30-odd kilometres southwest of Prosperine in central Qld.
That prospect includes the historic Dittmer mine Taurus is now backing, and numerous unexplored, historic workings in local area. The company believes the find confirms Dittmer as a major mineralised system defined by broad anomalies.
BMR share price
This small explorer, on the hunt for mineralised wealth in Western Australia and down in Tassie, has price-sending news of some weight.
Namely assay results from its maiden RC drilling campaign at its new Jupiter REE target at the Brothers project in WA.
Assay results it describes as “outstanding” including some core at more than 7,000 ppm TREO.
Some highlights include the facts:
• The RC program has delivered clay-hosted REE mineralisation in all 25 holes drilled across a 40km2 target.
• Consistent 20-30metre widths of REE mineralisation grading over 2,000 ppm TREO were found, within broader zones up to 64m grading over 1,000 ppm TREO.
• Magnet Rare Earth Oxides (MREO2) averaging 23% over +1,000ppm TREO intersections discovered…
• … along with extremely low thorium and uranium.
The company also notes there is potential there for resources with “significant grade and scale” and that the drill program has about another three weeks to go.
VMS share price
This microcap gold’n’copper-chasing Queenslander is still basking in recent warmth from a thick, high-grade gold hit out at its Liontown prospect at the Ravenswood West project, about 130km south of Townsville in northern Queensland.
17m @ 22.1 g/t Au Hit Confirms Liontown Feeder Zone.
Multiple, high-grade intersections validate conceptual target.
— Sunshine Metals (@SunshineGold20) November 23, 2023
Sunshine made a tantalising intersection of 17m at 22.14g/t gold at the Ravenswood Consolidated project in North Queensland. Colleague Michael “Washy” Washbourne already had it covered the other day.
Among other things, Washy wrote: “The company believes it may have struck paydirt in a gold and copper rich feeder zone to the 2.3Mt zinc-gold-copper-lead-silver VMS resource at the Liontown deposit.”
Meanwhile, Sunshine managing director Damien Keys told the market on Friday:
“The stunning intercepts at Liontown are a great reward for the solid geological work completed by the team.
“The decision was made to target the gold-copper rich footwall and feeder zones to the Liontown resource with a high impact, shallow RC program. The feeder zones have not been recognised by past explorers and are often difficult to target.”
Assays from a further 11 drill holes targeting the feeder zones and footwall lodes are due next month.
SHN share price