Element 25 has secured $10 million in a share placement to accelerate the expansion of its flagship Butcherbird manganese project in Western Australia.
The move follows the company securing a $50 million senior debt facility from the Northern Australia Infrastructure Facility (NAIF) in June.
The placement, priced at $0.28 per share, will issue 36.3 million new shares, a 13–16 per cent discount to recent trading prices. Shares are expected to be issued around September 19, with Petra Capital acting as sole lead manager and bookrunner.
“We are extremely pleased with the support from new and existing shareholders in this placement, which will allow us to move forward with our fully approved Butcherbird expansion,” Element 25 managing director Justin Brown said.
“Expanding Butcherbird is an important part of our strategy to produce HPMSM (high-purity manganese sulphate monohydrate), with our first facility planned for Louisiana, USA, and a development strategy that is backed by General Motors, Stellantis and the US Department of Energy.
“Funds raised under the placement will allow key orders to be placed for long lead equipment items and will fund the acceleration of detailed engineering design activities to progress the project in line with the project plan.”
The Butcherbird expansion project is set to lift production to 1.1 million tonnes per annum of manganese oxide concentrate.
A feasibility study in January valued the expansion with a pre-tax net present value of $561 million and a pre-tax internal rate of return of 96 per cent, generating an average $70.5 million per year over an 18-year mine life.
The expanded output will feed Element 25’s planned HPMSM facility in Louisiana, providing critical material for lithium-ion batteries.
The company has secured $US115 million from partners General Motors and Stellantis, alongside a $US166 million US Department of Energy grant to support the facility.
The BBX expansion is fully approved under WA’s regulatory framework, including the Department of Water and Environmental Regulation and the Department of Energy, Mines, Industry Regulation and Safety, setting the stage for Element 25 to become a global supplier of battery-grade manganese.
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