Element 25 Ltd (ASX:E25) is raising $35 million at $1.12 per share in a heavily oversubscribed placement.
The company will use the funds for its battery-grade High Purity Manganese Sulphate (HPMSM) project feasibility work, operating cost reduction capital costs, engineering optimisation work and working capital.
Progressing Butcherbird
“We are delighted with the support for the placement and welcome a number of highly credentialed new investors to the register,” E25 managing director Justin Brown said.
“On behalf of the Board of Directors, I would also like to thank our existing security holders for their ongoing support. Placement funds will assist in the continued optimisation of our Butcherbird Manganese Project, as we progress our staged development plan.
“We are also successfully continuing our negotiations with potential offtake partners, including offtake financing strategies, which remain on schedule to be finalised in line with feasibility study completion in December 2022.
"This capital injection will allow the company to continue its rapid growth strategy centred on the world-class Butcherbird Project to supply both the traditional and new energy battery markets.”
About Butcherbird
E25’s Butcherbird Manganese Project is a world-class manganese resource with current JORC resources of more than 260 million tonnes of manganese ore. The project straddles the Great Northern Highway and the Goldfields Gas Pipeline, providing turnkey logistics and energy solutions.
The company plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the project, which is expected to also reduce energy costs.
A cleaner, lower carbon flowsheet and high penetration renewable energy will place Butcherbird at the forefront of sustainable high-purity manganese production.
About the placement
E25 has received firm commitments for $35 million in gross proceeds via a placement at an issue price of $1.12 per share, which represents a 22% discount to the last traded price and a 13.1% discount to the 10 traded day VWAP of the company’s shares to November 15, 2022.
E25 will issue a total of 31,250,000 new shares and the placement is expected to settle on or around November 22, 2022, with new shares to be issued on November 23, 2022.