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Element 25 raising up to $5 million to accelerate Butcherbird Manganese Project development

The new funds will enable E25 to place deposits for long lead time items and progress detailed engineering design and other activities associated with the development of the project.

Element 25 Ltd - Element 25 raising up to $5 million to accelerate Butcherbird Manganese Project development
Last week, E25 was formally granted the mining lease for the project

Element 25 Ltd (ASX:E25) has received firm commitments from sophisticated, professional and institutional investors to raise up to $3.5 million through a placement of shares at 40 cents each.

In addition to the placement, E25 will be conducting a share purchase plan (SPP) to existing eligible shareholders to raise up to $1.5 million at the same issue price per share.

The funds raised under the placement and SPP will allow the company to accelerate the development of its Butcherbird Manganese Project in WA by allowing deposits for long lead time items to be placed and progress detailed engineering design and other activities associated with the development of the project.

Mining lease granted

Last week, E25 was formally granted the mining lease M52/1074 for the Butcherbird project by the Western Australian Department of Mines, Industry Regulation and Safety, paving the way for the formal lodgement of mining approval documentation.

The mining lease, which has been granted for 21 years, advances the company’s staged development strategy to generate early cashflows with a low capital requirement for stage 1.

This will be followed by expansion into downstream processing to produce high purity manganese.

No transaction costs

The SPP will enable existing shareholders to participate in the capital raising without incurring any brokerage fees or other transaction costs.

Eligible shareholders will have the opportunity to apply for up to $30,000 worth of shares in E25. The SPP is currently scheduled to close on July 21 2020.

Indicative timeline

Quick facts: Element 25 Ltd

Price: 0.57 AUD

ASX:E25
Market: ASX
Market Cap: $66.23 m
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Element 25 'well funded' as it progresses PFS on Butcherbird manganese project

Element 25 Ltd's (ASX:E25) Justin Brown sits down with Proactive's Andrew Scott while at Mines and Money in London 2019. The company's flagship asset is the Butcherbird manganese deposit, which has been described as Australia’s largest onshore manganese resource. ''The PFS is around 90%...

on 27/11/19

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