Element 25 Ltd will support growth initiatives at the Butcherbird Manganese Expansion Project in Western Australia and the proposed high purity manganese sulphate monohydrate (HPMSM) project in Louisiana, USA, after completing a share purchase plan (SPP).
Applications for the SPP at A$0.27 per share closed on Wednesday, June 26, 2024, with 84 eligible applications received totalling A$643,145.
Demonstrating their confidence in the company’s manganese strategy, all eligible directors participated in the SPP.
SPP details
A total of 2,382,066 new shares are scheduled to be issued on Wednesday, July 3, 2024, and trading of those new shares is expected to commence on Thursday, July 4, with holding statements anticipated to be dispatched on Friday, July 5.
New shares issued under the SPP will rank equally with existing Element 25 fully paid ordinary shares from their date of issue.
Under the SPP, eligible shareholders with a registered address in Australia, New Zealand, Hong Kong or Germany on the record date of 5.00pm Australian Western Standard Time on Monday, May 20, 2024, had the opportunity to apply for up to A$30,000 of new shares.
The SPP price of A$0.27 represented a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the five trading days before the record date, rounded to the nearest whole cent.
These shares were offered free of any brokerage, commission or transaction costs.
Use of funds
The funds will support the Butcherbird Stage 2 Expansion Project with work including initial engineering, procurement and project management activities prior to the completion of project financing and a final investment decision (FID).
In January 2024, the company completed a feasibility study to investigate the potential to expand the production of manganese concentrate at the company’s 100%-owned Butcherbird Project, in the southern Pilbara region.
This study demonstrated strong economics with robust economic returns and rapid capital payback.
READ: Element 25 eyes opportunity to boost cashflow with Butcherbird restart as manganese price soars
Activities for Louisiana include pre-commitment engineering activities to progress the planned battery-grade HPMSM facility, which is planned for development in partnership with General Motors (NYSE:GM) LLC and Stellantis NV.
Element 25 recently announced commercial terms in relation to a development site for the HPMSM project.
This proposed facility will utilise the company’s innovative proprietary technology to produce battery-grade HPMSM for use in Electric Vehicle (EV) battery manufacturing in the US.
The US project and the Butcherbird Expansion Project align with E25’s strategy to become an industry-leading, world-class, low-carbon battery materials manufacturer.
READ: Element 25 completes infill drilling at Butcherbird targeting manganese reserve extension