The placement followed a share purchase plan (SPP) which closed in late May raising $918,000 and was conducted on the same terms.
Allotment of the new shares under the placement, which was completed using the company’s existing placement capacity under listing rule 7.1., occurred yesterday.
Proceeds will allow Element 25 to accelerate a pre-feasibility study (PFS) on the Butcherbird Manganese Project in the Pilbara region of Western Australia.
The company is developing Australia’s largest onshore manganese resource at this project to produce high-purity manganese products.
Element 25 has this month appointed finance advisory group BurnVoir Corporate Finance to begin the process of arranging financing for development of Butcherbird.
BurnVoir has assisted in arranging development finance for a number of projects in the region, including Pilbara Minerals Ltd’s (ASX:PLS) Pilgangoora Lithium Project and Kalium Lakes Ltd’s (ASX:KLL) Beyondie Potash Project.
The advisory group will also play a role in supporting completion of the PFS this year, including the financial evaluation of the project.
In May, Element 25 signed the final Native Title Agreement required for the grant M52/1074 and development of the project.