Sign up Australia
Proactive Investors - Run By Investors For Investors

Element 25 selling non-core Holleton Gold Project to focus on manganese

The project is being sold to Ramelius Resources Ltd’s wholly-owned subsidiary Edna May Operations Pty Ltd.
Acquisition sign
Consideration for the sale is $1 million and a 1% NSR

Element 25 Ltd (ASX:E25) is selling its non-core Holleton Gold Project in Western Australia to Ramelius Resources Limited’s (ASX:RMS) wholly-owned subsidiary Edna May Operations Pty Ltd (EMO).

Consideration for the sale is $1 million along with a 1% net smelter royalty (NSR) for Element 25 on all future production from the Holleton project.

READ: Element 25 eyes growth in manganese demand from emerging battery revolution

The sale is part of Element 25’s strategy to focus on the development potential of the high purity manganese business at the Butcherbird project in the Southern Pilbara region.

This strategy includes rationalising the company’s project portfolio.

Holleton exploration licence application covers around 115 square kilometres of the Holleton Greenstone Belt, about 400 kilometres east of Perth.

 

The consideration of $1 million is payable in cash, shares or any combination at EMO’s election.

Element 25 said it was very pleased with the outcome of the transaction.

The cash and/or share component would provide important working capital, the company said.

“The royalty ensures shareholders will benefit from future exploration success as EMO and RMS roll out their exploration programs.”

Sale conditions

The transaction is binding but remains subject to a number of conditions which must be satisfied or waived by both parties within 60 days of executing the agreement.

These include the transfer of existing permits and agreements to EMO.

Element 25 recently changed its name from Montezuma Mining as part of its transition from a diversified explorer to the developer of a world-class manganese project.

READ: Element 25 advancing high-purity manganese pre-feasibility study

The company has commenced all key work streams for a pre-feasibility study at its 100%-owned Butcherbird project.

The PFS is building on a 2018 scoping study that concluded Butcherbird has potential to be an economically viable producer of high-purity manganese sulphate for lithium-ion battery markets.

Simulus Engineering has been contracted to undertake a 600-kilogram bulk leach test program to further optimise process and produce samples for offtake discussions.

A key adviser has been appointed to provide consulting support in finding the optimal power strategy.

Discussions with prospective advisors are also progressing regarding project financing.

View full E25 profile View Profile

Element 25 Ltd Timeline

Related Articles

1532518239_Vanadium-electrolyte-batteries.jpg
September 13 2018
The vanadium price is riding high, and so is Bushveld Minerals
1529153638_drillingatcentral03.1024x0.jpg
June 16 2018
The company aims to begin drilling in summer 2018.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use