Element 25 Limited (ASX: E25) acquires and explores mineral interests in Australia and overseas. The company mines for gold, copper-lead-zinc, nickel, and copper-gold targets.
The company today, on 10th April 2019, has updated that it has reached an agreement with St Barbara Limited (“SBM”) for the sale of Exploration Licences 28/2327 & 28/2313 (“Green Dam Project”).
According to the sale agreement, SBM will acquire 100% of the Green Dam Project for $700K cash. SBM will also pay the company a 2% Net Smelter Royalty (NSR) on all future productions from the stated project.
The company is delighted with the outcome of this transaction. The retained royalty confirms that the shareholders will be benefitted from future exploration success as St Barbara Limited takes the project forward. The additional cash will provide necessary working capital as the company completes the pre-feasibility work at the 100% owned Butcherbird High Purity Manganese Project.
This transaction characterizes another important additional step in the company’s strategy to rationalise its project portfolio in order to allow the technical team to concentrate on the advancement of the high purity manganese business.
For the half-year ended 31 December 2018, the revenues for the consolidated entity came in at $1,034,521, out of which the dominant share was of the net gain on sale of mining interests, which came in at $1,000,000. Also, the fair value gains on financial assets were $12,371. The company has incurred a loss for the half-year after tax of $1,245,920. This was majorly on the back of increased exploration expenditure of $1,536,818, which rose from the levels of $870,028 incurred in the prior corresponding period. The diluted loss per share came in at 1.5 cents.
During the half-year ended 31 December 2018, the company progressed the pre-feasibility study of the Butcherbird High Purity Manganese Project, where the company intends to produce high purity manganese, including manganese sulphate for lithium-ion batteries and electrolytic manganese metal.
During the period, the company has disposed off the whole of its stake in the Holleton Project to Ramelius Resources Ltd’s (ASX: RMS) wholly-owned subsidiary Edna May Operations Pty Ltd. The company has garnered a sum of $1 million in cash and a 1% NSR (Net Smelter Royalty) on all prospective production from the Holleton Project.
On the stock-performance front, the stock has posted the YTD return of -10.53%. The company also has posted return of -12.82% over the past month. At market close on the 10th April 2019, the stock of the company was trading at a price of A$0.17, performing flat during the day’s trade with a market capitalisation of ~A$14.27 million. The stock opened the trading day at A$0.170, which was also its intraday high with an average daily volume of 12,608. It had a 52-week high price of A$0.300 and a 52-week low price of A$0.150, with an average volume of 42,634.
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