Wildcat Announces Offtake Term Sheet with Euro Manganese

Rhea-AI Summary

Wildcat Discovery Technologies has entered a non-binding offtake term sheet with Euro Manganese Inc. (EUMNF) for high-purity manganese from the Chvaletice Manganese Project in the Czech Republic. The agreement spans seven years, starting from first production, with potential for renewal. Wildcat, focusing on nickel and cobalt-free cathode production, plans to build a U.S.-based plant by 2026-2027. The offtake represents a significant percentage of Euro Manganese's annual production, with pricing tied to market indicators. The deal is contingent on Wildcat's plant construction and product qualification. This partnership aligns with Wildcat's strategy for IRA-compliant cathode materials and Euro Manganese's goal to supply the Western battery value chain.

Positive

• Long-term offtake agreement for 7 years with potential for renewal
• Significant percentage of Euro Manganese's annual production committed
• Aligns with IRA compliance for North American customers
• Supports Wildcat's U.S.-based cathode material production plans

Negative

• Term sheet is non-binding and contingent on Wildcat building its U.S. plant
• Final pricing mechanism and tonnages yet to be determined
• Product qualification from Chvaletice Demonstration Plant required

SAN DIEGO, Aug. 21, 2024 /PRNewswire/ -- Wildcat Discovery Technologies ("Wildcat") is pleased to announce it has entered an offtake term sheet dated August 15, 2024 (the "Term Sheet") with Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQB: EUMNF; Frankfurt: E06) (the "Company" or "EMN"), for the purchase of high-purity manganese product from the Company's Chvaletice Manganese Project ("Chvaletice" or the "Project") in the Czech Republic.

Highlights

• Based in San Diego, California, Wildcat partners with global leaders throughout the battery industry to align and integrate all elements of the full battery cell for optimal performance. Consistent and significant progress in Wildcat's technology has led to a focus exclusively on nickel and cobalt free cathode production. Wildcat has announced the building of a U.S.-based plant expected 2026 – 2027 to produce a portfolio of safe sustainable, and cobalt/nickel-free cathode materials for electric vehicle battery cells and other markets including stationary storage.
  
  
• Pursuant to the Term sheet, deliveries are to commence from first production, for an initial term of seven years with potential for renewal. The commencement of the initial term shall be subject to successful qualification by Wildcat of the Company's high-purity manganese product from the Chvaletice Demonstration Plant.
  
  
• The offtake tonnages increase over the seven-year term and the average annual tonnage represents a significant percentage of the Company's annual high-purity manganese product production. It is expected that pricing will be subject to market indicators, with mechanisms for increase/decrease tied to certain benchmarks.
  
  
• The Term Sheet is non-binding and contingent on Wildcat building its U.S plant, however the parties intend to enter a binding offtake agreement, in which the pricing mechanism and tonnages will be finalised, together with any other agreements necessary.

 Dr. Matthew James, President & CEO of Euro Manganese, commented:

"This is another major milestone for Euro Manganese and for the western market battery value chain. This long-term offtake term sheet represents a significant percentage of the planned production of the Chvaletice Manganese Project over time.  An important value proposition is our product does not originate from, or is processed by, a foreign entity of concern, a key purchasing criteria for North American customers. We look forward to working with Wildcat as they advance on their goals of delivering CAM materials to their customers."

Mr. Mark Gresser, CEO of Wildcat said: "This agreement represents an important step for Wildcat in the development of high quality, low-cost, reliable, localized and IRA compliant sources for important cathode pre-cursor materials.  We view the Euro Manganese partnership as an important piece to our supply chain strategy, and look forward to working with them in the coming years."

About Euro Manganese

Euro Manganese is a battery materials company focused on becoming a leading, competitive, and environmentally superior producer of high-purity manganese for the electric vehicle industry and other high-technology applications. The Company is advancing development of the Chvaletice Manganese Project in the Czech Republic, which is a unique waste-to-value recycling and remediation opportunity involving reprocessing old tailings from a decommissioned mine. The Chvaletice project is the only sizable resource of manganese in Europe, strategically positioning the Company to provide battery supply chains with critical raw materials to support the global shift to a circular, low-carbon economy.

About Wildcat

Wildcat's mission is to produce high-performance U.S.-made cathode materials to enable the widespread adoption of clean energy. Founded in 2006, the company plans to manufacture a portfolio of nickel- and cobalt-free cathode materials at a production factory in the United States. At the same time, Wildcat will continue to leverage its 15 years of materials development and cell design expertise to help customers achieve the best integrated battery cell performance. For more information, www.wildcatdiscovery.com.

Media Contact:
press@wildcatdiscovery.com 

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SOURCE Wildcat Discovery Technologies

FAQ

What is the duration of the offtake agreement between Wildcat and Euro Manganese (EUMNF)?

The offtake agreement has an initial term of seven years, with the potential for renewal.

When is Wildcat planning to build its U.S.-based plant for cathode material production?

Wildcat plans to build its U.S.-based plant for cathode material production between 2026 and 2027.

Is the offtake term sheet between Wildcat and Euro Manganese (EUMNF) binding?

No, the offtake term sheet is non-binding and contingent on Wildcat building its U.S. plant. The parties intend to enter a binding agreement in the future.

What percentage of Euro Manganese's (EUMNF) production is covered by the Wildcat offtake agreement?

The offtake agreement represents a significant percentage of Euro Manganese's annual high-purity manganese product production, though the exact percentage is not specified.