This standby facility may be used to fund the development of the world-class Butcherbird High Project and working capital.
Element 25 is progressing a pre-feasibility study (PFS) on a 50-year mining operation at the Butcherbird High Purity Manganese Project in Western Australia.
Follows recent royalty sale agreement
In late February 2020, E25 has entered into a binding sale and purchase agreement to dispose of a portfolio of royalties relating to several project areas.
The consideration for the deal, which is subject to conditions, is $500,000 worth of shares in SilverStream SEZC dba Vox Royalty.
One condition is the successful listing of SilverStream on the TSX by no later than 15 May 2020.
Proceeds from the eventual sale of the Silverstream shares will be used to continue the development of E25’s flagship Butcherbird Project in Western Australia.
PFS nearing completion
The PFS for the project is nearing completion and the company is on a clear path towards development and the production of high purity manganese products.
E25 is confident the project has all the ingredients for success - it's in a tier-1 mining jurisdiction in Western Australia with established infrastructure; has simple geology at surface which permits low-cost, free dig mining; and there is a low-cost, clean processing pathway that can match demand.
With the PFS nearing completion, the company is confident that key project challenges are well understood and is keen to begin pilot testing.
Project financing options are also being determined with the Northern Australia Infrastructure Facility (NAIF) investigating the potential to provide debt financing for the Butcherbird Project.
Along with this route, the company is exploring traditional debt/equity, offtake pre-pay/royalty streaming, export credit agency debt financing and project level equity investment options.