The ASX is about to get another manganese stock as Canadian explorer Euro Manganese launches an $8.8 million initial public offering.

Euro, which also plans to list in Toronto, is selling shares at 26c a pop and eyeing a market cap of up to $45 million ahead of a ASX listing in October.

Its core business — and current ‘sole focus’ — is the evaluation and development of its Chvaletice manganese project, in the small town of Chvaletice in the Czech Republic.

Manganese is the fourth-most-traded metal in the world. Only aluminium, iron ore and copper are more widely used.

About 90 per cent of manganese goes into steel-making, but it’s increasingly used in next-generation battery and power storage applications.

Tesla boss Elon Musk and Panasonic – which supplies the batteries for Tesla vehicles – have been very public about their push to eliminate cobalt from their products.

There is speculation Tesla may switch to manganese-based batteries after it inked a five-year partnership with a prominent NMC battery researcher which has been tasked with reducing battery costs for the company.

Euro Manganese will join a group of about eight other ASX-listed manganese stocks — many of which have made strong gains over the past year.

Stockhead recently reviewed the ASX manganese scene here.

Euro will use the money to undertake exploration at the site and re-process a manganese deposit hosted in historic mine tailings.

The company is also launching simultaneously a listing on the Toronto Stock Exchange, and says proceeds from the two will “fund operations and negative cash flows therefrom for at least 18 months”.

Euro Manganese proposes to hold 44 per cent of the funds for working capital, with administrative expenses and costs of technical staff in the Czech Republic and Canada taking up another 34 per cent.

A smaller amount will be used to fund geological and mineral exploration in Chvaletice.

The company’s eight-strong board of directors and four-strong leadership team combined will hold $7.5 million worth of shares should the dual listings pay off.

The Australian offer hopes to raise between $5.2 million and $8.8 million. On listing there will be up to 175 million shares. The offer, managed by Canaccord Genuity, is open from September 5 to 18.

The stock will trade under the code EMN from October 1.

You can view the Australian and Canadian prospectuses here.