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.