Investing

Element 25 Announces Share Purchase Plan

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) will offer eligible shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP), targeting to raise $5 million (before costs).

Under the SPP, eligible Element 25 shareholders, being shareholders who had a registered address in Australia, New Zealand, Hong Kong or Germany on Element 25’s register on the Record Date (5.00pm Australian Western Standard Time on Monday, 20 May 2024), will have the opportunity to apply for up to $30,000 of New Shares free of any brokerage, commission or transaction costs, subject to the terms and conditions that will be set out in the SPP Booklet to be despatched to eligible shareholders in due course. The SPP will be priced at $0.27 which represents a 14 per cent discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days prior to this announcement, rounded to the nearest whole cent.

STRATEGIC RATIONALE

In January 2024, the Company announced that it had completed a Feasibility Study (Study) to investigate the potential to expand the production of manganese concentrate at the Company’s 100% owned Butcherbird Project (Project), located in the southern Pilbara region of Western Australia1. The Study demonstrated strong economics with robust economic returns and rapid capital payback. Expansion of the processing facility at Butcherbird aligns with Element 25’s strategy for its planned battery grade high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV2.

Funds raised from the SPP will enable the Company to progress its current prime projects at the Butcherbird mine site (located in the southern Pilbara region of 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 LLC and Stellantis NV.

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).

Click here for the full ASX Release

This post appeared first on investingnews.com

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Investing