Euro Manganese Inc. (EMN) has entered into a third amended agreement with Orion OMRF (BK) LLC to restructure its outstanding debt. Under the terms, the existing loan, which totalled approximately US$23.5 million as of March 31, 2026, will be automatically converted into a royalty on the Chvaletice manganese project in the Czech Republic. This conversion is subject to the company successfully satisfying a specific fundraising condition.

The amendment provides the company with greater financial flexibility by eliminating the repayment obligation associated with the original debt facility. As part of this restructuring, the company has also cancelled the undrawn second loan tranche, effectively streamlining its balance sheet. Once the conversion occurs, the royalty will be set between 2.29% and 2.46% of project revenues, with the final rate determined by a sliding scale linked to the achieved market prices for high-purity manganese products.

"This agreement is a constructive and positive outcome for EMN. By converting the existing facility into a royalty, we are simplifying our capital structure, improving financing flexibility and positioning the Company to advance the Chvaletice Manganese Project through its next stage of development." — Martina Blahova, Chief Executive Officer

The move away from time-based repayment milestones is designed to align the project’s financial obligations with its operational development timeline. Euro Manganese remains focused on re-processing historic mine tailings to produce high-purity electrolytic manganese metal and high-purity manganese sulphate monohydrate. These materials are intended to serve as critical ingredients for the European electric vehicle and battery storage markets.

Management indicated that the deal with Orion reflects ongoing support and confidence in the project's long-term potential. The company is now working toward meeting the defined fundraise condition, which remains the primary catalyst for triggering the final debt-to-royalty conversion and formalising the new capital structure.

Read the full announcement: EMN Strengthens Financial Position Cond. Royalty Conversion