Element 25 Ltd (ASX:E25, OTCQX:ELMTF) is targeting $5 million to support manganese growth initiatives in Australia and downstream in the US through a non-underwritten share purchase plan (SPP) for eligible shareholders.
Under the SPP, eligible shareholders, being 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, will have the opportunity to apply for up to $30,000 of new shares.
Discount to VWAP
The SPP is priced at $0.27 which represents a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days, rounded to the nearest whole cent.
These shares are being offered free of any brokerage, commission or transaction costs, with the SPP subject to the terms and conditions to be set out in the SPP Booklet to be despatched to eligible shareholders.
Use of funds
Funds raised will enable E25 to progress prime projects at the Butcherbird mine site in Western Australia as part of the Butcherbird Stage 2 Expansion Project, as well as continuing to support the high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA, in partnership with General Motors (NYSE:GM) LLC and Stellantis NV (NYSE:STLA, EPA:STLA).
Butcherbird Stage 2 expansion activities include initial engineering, procurement and project management activities prior to the completion of project financing and final investment decision (FID).
Downstream activities
The activities for Louisiana include pre-commitment engineering activities to progress the planned HPMSM facility, where the company recently announced commercial terms in relation to a development site for the project.
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.
Expansion of the Butcherbird processing facility aligns with the company’s strategy for its planned battery-grade HPMSM project in Louisiana in partnership with General Motors LLC and Stellantis NV.