Dual-listed Euro Manganese said on Wednesday it had raised C$11.2-million (A$12.3-million) through a combination of private placement and a share purchase plan, with proceeds to fund the development of its flagship Chvaletice manganese project in the Czech Republic.

The financing included a C$9.8-million (A$10.8-million) private placement and an oversubscribed A$1.5-million (C$1.4-million) share purchase plan offered to eligible shareholders.

The company welcomed the European Bank for Reconstruction and Development (EBRD) and mining investor Eric Sprott as significant shareholders through the financing.

“We are extremely pleased with the strong support demonstrated by both our existing shareholders and new investors, including the notable participation of Mr. Eric Sprott,” CEO Martina Blahova said in a statement.

“As Euro Manganese’s largest shareholder, EBRD’s investment reinforces its support and commitment to the Chvaletice project. This critical financing enables the company to pursue certain key milestones and advance project development,” she said.

The company said net proceeds would be used to progress permitting activities, continue customer engagement efforts to secure additional offtake agreements and strategic investments, and potentially operate its demonstration plant to showcase high-purity manganese products to potential buyers.

The private placement involved the issuance of 54.6-million securities, comprising 39.7-million common shares priced at C$0.18 each and 14.9-million CHESS Depositary Interests (CDIs) priced at A$0.195 apiece. Each security issued carried one warrant exercisable at C$0.225 until November 28, 2026.

Euro Manganese is developing the Chvaletice project as a waste-to-value recycling and remediation initiative that reprocesses old mine tailings. The project is the only known significant source of manganese in the EU and is aimed at supplying battery-grade materials to the electric vehicle industry.

The company is also exploring a second opportunity to produce high-purity manganese products in Bécancour, Quebec.