Element 25 Ltd (ASX:E25) has utilised its controlled placement agreement with Acuity Capital to raise $555,000 (inclusive of costs) by agreeing to issue 1.53 million shares to Acuity at an issue price of 36.3 cents.
This issue price represents a 1.3% premium to the 15-trading day VWAP of 35.8 cents to May 26, 2020, and a 1% discount to the last closing share price of 36.5 cents.
The shares will be issued out of the company’s LR7.1A capacity and settlement is scheduled for Friday, May 29, 2020.
Sale of RareX holding
The company also sold 12,537,965 RareX Ltd (ASX:REE) shares in May for a total of $462,780 after brokerage costs.
The total funds raised from the two transactions is $1,017,780, which will be used towards additional working capital.
E25 recently completed a pre-feasibility study for the Butcherbird Manganese Project, which contemplates the export and sale of manganese concentrate from the project over a long mine life and delivers outstanding economic metrics - further confirming the potential for the project to be Australia’s next significant manganese mine.
E25 has also revealed a maiden proved and probable ore reserve of 50.55 million tonnes at 10.3% manganese, containing 5.22 million tonnes of manganese.