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Element 25 gets cash from sale of non-core asset to advance Butcherbird manganese project

The company is completing the pre-feasibility work at its 100% owned Butcherbird High Purity Manganese Project.

Element 25 Ltd - Element 25 gets cash from sale of non-core asset to advance Butcherbird manganese project
E25 is aiming to produce high purity manganese sulphate for lithium-ion battery cathodes

Element 25 Ltd (ASX:E25) has completed the sale of its Cummins Range Rare Earths Project in the Kimberely region of WA to RareX Pty Ltd for a consideration of $1 million.

The consideration includes $500,000 in cash and about 13.3 million shares in RareX’s parent company Sagon Resources Ltd (ASX:SG1) at a deemed price of 3.75 cents per share.

The sale agreement also includes a number of future payments as follows:

  • Within twelve months of settlement of the acquisition, RareX/Saigon must pay $500,000 in cash and issue $500,000 in shares in Sagon or pay $1,000,000 in cash (deferred consideration).
  • Within 36 months of settlement, and subject to the completion of a positive Bankable Feasibility Study (BFS) on the Cummins Range project, RareX/Sagon must pay or issue $1,000,000 in cash or Sagon shares or a combination thereof to a total value of $1,000,000 (further deferred consideration).
  • If a BFS is unable to be completed within 36 months of the date of settlement, the further deferred consideration is not payable and RareX will, in lieu, grant E25 a 1% net smelter return royalty on future production from the Cummins Range project capped at $1,000,000.

The Cummins Range sale is a positive outcome for E25 as the additional cash will provide valuable working capital to complete the pre-feasibility work at the 100% owned Butcherbird High Purity Manganese Project.

E25 had completed a positive scoping study with respect to developing the deposit to produce high purity manganese sulphate for lithium-ion battery cathodes as well as electrolytic manganese metal for use in certain specialty steels.

Quick facts: Element 25 Ltd

Price: 0.2 AUD

ASX:E25
Market: ASX
Market Cap: $18.38 m
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