leadf
logo-loader
viewElement 25 Ltd

Element 25 and OM Holdings extend manganese offtake exclusivity period for Butcherbird Project

The 30-day exclusivity extension to January 10, 2021, is to allow sufficient time for the definitive documents to be finalised.

Element 25 Ltd - Element 25 and OM Holdings' subsidiary agree to extend manganese ore offtake exclusivity period for its Butcherbird Project
The Butcherbird project is a world-class manganese resource with current JORC resources in excess of 263 million tonnes

Element 25 Ltd (ASX:E25) (FRA:QFP) and OM Holdings Ltd's (ASX:OMH) subsidiary OM Materials (S) Pte Ltd have agreed to an extension to the manganese ore offtake exclusivity period for its Butcherbird Manganese Project in Western Australia. 

This extension is to allow sufficient time for the definitive documents to be finalised. 

The exclusivity will be extended by 30 days and will now expire on January 10, 2021. 

Offtake deal

Key commercial terms have and continue to be agreed under a non-binding term sheet to sell 100% of the manganese ore produced - up to 365,000 tonnes per annum - from the first stage of the Butcherbird project development to OM Materials, under a take-or-pay offtake arrangement

In addition to the offtake deal, E25 and OM Materials are also negotiating the final terms of a $2 million convertible funding agreement, which will be part of the overall project financing.

World-class manganese resource

The Butcherbird project is a world-class manganese resource with current JORC resources in excess of 263 million tonnes of manganese ore.

E25 recently completed a pre-feasibility study with respect to developing the deposit to produce manganese concentrate for export to generate early cash flow with a modest capital requirement.

The outstanding economics and low capital hurdle of less than A$15 million will allow the company to develop the project in a relatively short timeframe.

OM Holdings has over 25-years history

OM Holdings Limited is an integrated manganese and silicon company, involved in the mining and trading of raw ores, as well as the smelting and marketing of processed ferroalloys.

With an established history of over 25 years in the industry, OMH captures value across the entire process chain through operations in Australia, China, Japan, Malaysia, Singapore and South Africa.

Quick facts: Element 25 Ltd

Price: 1.965 AUD

ASX:E25
Market: ASX
Market Cap: $260.63 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Element 25 Ltd named herein, including the promotion by the Company of Element 25 Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Element 25 now just weeks away from becoming a producer at Butcherbird

Element 25 Ltd's (ASX:E25) (FRA:QFP) (OTCMKTS:ELMTF) Justin Brown tells Proactive's Andrew Scott they're making strong progress on the first stage of a planned multi-stage development at the Butcherbird manganese project with the delivery on-track for next month. The current work plan has dry...

5 days, 4 hours ago

2 min read