en.Wedoany.com Reported - Euro Manganese (ASX:EMN) has revised its financing arrangement with Orion OMRF, part of the Orion Resource Partners Group, converting an outstanding loan of $23.5 million (approximately A$33.78 million) into a royalty structure for the Chvaletice Manganese Project.

Under the amended agreement, the outstanding loan and accrued interest will be automatically converted upon meeting certain financing conditions by a date acceptable to Orion. Following the conversion, Euro Manganese will no longer be obligated to repay the loan.

Euro Manganese stated that the new structure eliminates the time-based milestones in the original agreement, allowing project advancement to align more flexibly with financing progress, permitting approvals, and market conditions.

Post-conversion, Orion will receive a quarterly royalty of 2.29% to 2.46% of project revenue, based on a sliding scale linked to the realized price of the project's high-purity manganese products. The financing arrangement, originally announced in November 2023, totaled $100 million, executed in two tranches of $50 million each.

Euro Manganese CEO Martina Blahova said the agreement is a constructive outcome, simplifying the capital structure and enhancing financing flexibility by converting existing debt into a royalty, aiding the company in advancing the next phase of the Chvaletice project. Chairman Rick Anthon added that the revised agreement provides a clearer, simpler capital structure and greater financial flexibility as the company enters its next stage.

The Chvaletice Manganese Project, located in the Czech Republic, plans to produce high-purity electrolytic manganese metal and high-purity manganese sulfate monohydrate by reprocessing historical mine tailings.

Orion retains the right to offtake 20% to 22.5% of the project's high-purity manganese production for 10 years from the first delivery. Euro Manganese stated that the offtake terms will align with commercial terms the company secures to meet financing requirements.