Interview with Larry Reaugh, President & CEO of American Manganese (TSX-V:AMY)

American Manganese Inc. is a critical metals company focussed on extracting cathode materials from lithium-ion batteries via recycling using its RecycLiCo™ Patented Process.

American Manganese segued away from low-grade manganese recovery to battery recycling in 2016. Reaugh claims American Manganese has proven it can get through pilot plant testing. As far as American Manganese's current situation, it has patented technology and is now looking to finance a commercial plant facility. We query him about his plans and process. What did you make of his explanation?

American Manganese has a little over C$500,000; an imminent raise is required? Reaugh says American Manganese has already completely its pilot testing, it's not just lab testing. American Manganese has received material from two "tier-1" companies for testing, and Reaugh is now having conversations about offtake agreements. The existing test facility runs at 2KG/hour, though Reaugh thinks this can feasibly be ramped up to 20KG/hour. Several hundred pounds has been through the process in order for American Manganese to with its hydrometallurgical-produced powder (available to look at on its website). The powder is a cathode material that goes back into the battery. Reaugh also claims the company is working with the DoE in the U.S, and is part of their recycling programme. They are working together on the shredding of material of its cathodes, reducing the battery down to its foils so it can be processed. Would funders be happy with results from a pilot plant this small? Reaugh also comments that American Manganese doesn't yet know where its supply will come from or the economics around the build of the commercial plan as engineer is required (costing $1M).

Reaugh claims the economics are "great," and the process provides a close-loop circuit to battery suppliers' issues. The big risk that Reaugh is clear about is in the negotiation of the deal itself. Does the management team at American Manganese have the know-how, and the funding, to play hardball in the interests of its shareholders? The success of American Manganese will be almost entirely dictated by the quality of its agreements. The business plan (and numbers) has been put together by American Manganese's CTO (Chief Technical Officer).

Reaugh states it's the "only plan you'll find out there." However, Reaugh's claim that American Manganese is the only company that can offer investors exposure to this sector is confusing. Is Reaugh unaware of the competition, or does he see American Manganese as on a different level because of its patents (which must be proved to be economic)? Reaugh claims he doesn't know what the competition is doing because the competition isn't transparent.

However, Reaugh claims Neometals didn't discuss recoveries or purities in its pilot plant result, but he claims American Manganese can present the evidence in front of investors, "what more can a man ask for?" He also claims half of the tier-1 battery manufacturers are testing material with American Manganese.

Reaugh claims American Manganese will look to raise C$15-20M for the build of the commercial plant. Maybe Will investors be willing to front this amount to a company worth C$22.6M with results from a small pilot plant and no supply contract?

Company page: https://americanmanganeseinc.com/

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