Osborne Park-based Element 25 has announced another capital raise in order to further expand its Butcherbird manganese project in the Pilbara.
Osborne Park-based Element 25 has announced another capital raise in order to further expand its Butcherbird manganese project in the Pilbara.
The Justin Brown-led developer, which has a market cap of $86.3 million, said on Monday it would raise $18 million, marking its third significant funding initiative since September last year.
After rattling the tin for $10 million in September, earlier this year the junior extended its $30 million funding deal with Acuity Capital Investment Management for a further three years.
Under its most recent capital raise, Element 25 said it would issue 60 million fully paid ordinary shares at an issue price of 30 cents per share.
This price represents a 9.1 per cent discount of the junior’s final closing price of 33 cents prior to entering its trading halt on April 8.
In line with previous announcements, the company said increasing Butcherbird’s production capacity to 1.1 million manganese concentrate would allow this feedstock to eventually be supplied as its mooted high-purity manganese sulphate monohydrate (HPMSM) refinery in the American state of Louisiana.
“Expanding Butcherbird is an important part of our strategy to sell manganese concentrate to steel industry partners as well as using it as feedstock in our plans to produce HPMSM,” Mr Brown said.
“We are pleased with the support from new and existing shareholders in this placement, particularly in light of the challenging market backdrop.
“Funds raised under the placement support our $50 million backing from NAIF to fund the construction of the BBX project in line with the project plan.”
As of 10.21am AWST, Element 25 shares were down 2 per cent to 32 cents.
