Manganese X Energy (TSXV: MN) has secured a C$2 million ($1.4m) investment from Canadian mining billionaire Eric Sprott to support its Battery Hill project in New Brunswick. Shares of the manganese developer soared on the announcement.
The investment is part of a private placement of 60 million subscription receipts priced at C$0.035 each for C$2.1 million. Sprott has committed to purchasing approximately 57.1 million of the receipts, which would make him a control person of the company (holding over 20% of voting shares) upon closing.
Manganese X’s shares traded at C$0.055 apiece for a 57.1% intraday gain as of noon ET Thursday, for a market capitalization of C$7.4 million ($5.1m).
Manganese X said it will use the proceeds to fund the current programs to advance the Battery Hill project, the results of which will be used for an upcoming pre-feasibility study.
Located near the town of Woodstock, NB, the project hosts a series of banded iron formations that collectively constitute one of the largest manganese resources in North America, according to a study cited by the company.
The property covers about 14 sq. km and has a resource estimate of 35.14 million tonnes grading 6.39% manganese and 10.64% iron in the measured and indicated categories, plus 27.72 million tonnes grading 6.46% iron and 10.73% iron in the inferred category.
According to a preliminary economic assessment from 2022, Battery Hill could produce about 68,000 tonnes of high-purity manganese sulphate over a 47-year mine life.
At a 10% discount rate, the project would generate a post-tax net present value of $486 million and a post-tax internal rate of return of 25%. Capital costs are estimated at $350 million, with a payback of 2.8 years.
Source: MINING.COM – Read More
