Shares in Euro Manganese Inc CDI (ASX: EMN) are higher today after news of the company's placement was announced this morning.
At the time of writing, the Euro Manganese share price is up 2%, trading at 51 cents.
In today's release, Euro Manganese announced it has closed the second tranche of its private placement. Let's take a closer look at the battery materials company's update.
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Second tranche closed
The second tranche of Euro Manganese's placement included around 8.3 million CHESS depository interests, each priced at 60 cents. It brought in $5 million for the company.
In total, the placement has seen Euro Manganese bank an extra $30 million.
The money will be used to advance the company's Chvaletice Manganese Project in the Czech Republic. There, Euro Manganese will complete the installation and commissioning of its high-purity manganese demonstration plant.
Euro Manganese can now also fund the demonstration plant's first year of operation, as well as secure the project's permits and conduct a feasibility study. It will also use the placement's proceeds to pay for certain land acquisitions.
According to Euro Manganese, the placement was anchored by a strategic investor and an ESG-focused fund.
It was also supported by several existing institutional shareholders and involved two new institutional investors. The company said the two new investors had strong positive views on ESG projects and high purity manganese in Europe.
The placement will cost Euro Manganese $1.5 million, which will be paid to the placement's lead manager and book-runner, as well as the company's acting financial advisor.
Euro Manganese share price snapshot
The boost to the Euro Manganese share price brought on by today's news adds to its recent positive performance on the ASX.
Currently, the Euro Manganese share price is 27% higher than it was at the start of the year. It's also gained a whopping 587% over the last 12 months.
The company has a market capitalisation of around $125 million, with approximately 363 million shares outstanding.
