Euro Manganese swaps Orion loan for conditional royalty

Euro Manganese restructured its financing with Orion Resource Partners on 10 July 2026 in Vancouver, British Columbia.

The ASX and TSX-V listed company, which trades as EMN and on the FSE as E060, will replace an outstanding convertible loan with a conditional royalty linked to the Chvaletice Manganese Project in the Czech Republic.

If a future fundraising condition is met, Euro Manganese can remove more than US$23.5 million of debt from its balance sheet.

Once that condition is satisfied, the revised deal removes repayment obligations tied to the existing convertible loan.

Instead, Orion Resource Partners would receive a revenue-based royalty over the Chvaletice Project.

Martina Blahova on financing reset

The new agreement also removes several development milestones from the previous financing package.

As a result, Euro Manganese has more room to advance Chvaletice in line with financing, permitting and market conditions.

President and chief executive Martina Blahova called the revised structure a positive outcome for EMN.

“This agreement is a constructive and positive outcome for EMN,” Blahova said.

Blahova added that the change simplifies the capital structure, improves financing flexibility and helps move Chvaletice into its next development stage.

Chairman Rick Anthon said the latest agreement reflected a strong relationship with Orion and left EMN better placed for its next phase of development.

According to Euro Manganese, the financing reset comes as the company works to develop what it plans to be Europe’s first domestic producer of high-purity manganese products for the battery sector.

The company also describes Chvaletice as Europe’s only near-term source of high-purity manganese.

Euro Manganese plans to reprocess historic mine tailings at Chvaletice in the Czech Republic.

The project is designed to produce high-purity electrolytic manganese metal, or HPEMM, and high-purity manganese sulphate monohydrate, or HPMSM.

Those materials are used in next-generation electric vehicles, energy storage batteries and defence applications.

Because the project sits inside the European Union, Euro Manganese says Chvaletice can support a fully traceable, low-carbon supply chain.

Meanwhile, Orion remains a long-term financing partner under the revised arrangement.