- Element 25 Limited is developing the Butcherbird Manganese Project in WA to produce high quality manganese concentrate & high purity manganese products for traditional & new energy markets.
- The quarter ending 30 June 2020 saw excellent progress for Element 25, particularly with the publishing of PFS and Maiden Reserve for the Project which highlighted outstanding economics and a low capital requirement.
- After a recent Placement raising $ 3.5 million before costs, and oversubscribed SPP is likely to propel developments at the Project together.
Manganese markets are robust, and the demand for manganese is growing. However, supply has constraints. Tapping this lucrative opportunity, Element 25 Limited (ASX:E25) is building a resilient, globally significant, low cost, high purity manganese project turbocharged by early cashflow from a low capex concentrate export opportunity- the Butcherbird Manganese Project.
Amid recent developments to the Project garnering market attention, the Company recently intimated about completing a heavily oversubscribed Share Purchase Plan (SPP).
Element 25’s Oversubscribed SPP
On 23 July 2020, the Company announced that an SPP started on 6 July 2020 had closed as planned on 21 July 2020, after receiving applications for more than $ 3.2 million. Funds raised from the SPP are likely to support Element 25 in accelerating development at the Project.
The SPP was evidently heavily oversubscribed, exceeded by more than double the outlined target value in the announced booklet of $ 1.5 million. The response demonstrates the strong support shown by shareholders.
The Board has opted to use its discretion under the terms of the SPP and accept all shareholder applications. Element 25 is likely to allot new shares in the Company’s capital under the SPP and thanked all shareholders who participated for their ongoing support and commitment.
As per the Company’s notification on 6 July 2020, share trading date, that is the date on which shares allotted under the SPP will commence trading on the ASX would be on or around 24 July 2020.
On 6 July 2020, Element 25 received firm commitments from sophisticated, professional, and institutional investors to raise up to a total of $ 3.5 million via Placement of up to 8.75 million fully paid ordinary shares at an issue price of $ 0.40 per share.
On the same date, the Company proposed that it will be conducting an SPP to existing eligible shareholders to raise up to $ 1.5 million at the issue price per of $ 0.40. This issue price represented an 11.10 % discount to the volume weighted average price of the shares traded on the ASX during the 5 trading days on which sales in the shares were recorded immediately (prior to 6 July 2020).
Moreover, the SPP would enable existing shareholders to participate in the capital raising without incurring any brokerage fees or other transaction costs. It also offered an opportunity for shareholders holding less than a marketable parcel of shares, to increase their shareholding to a marketable parcel.
Eligible shareholders (holders of fully paid ordinary shares with an address in Australia, Germany, Hong Kong, China, and New Zealand) would have the opportunity to apply for up to $ 30k worth of fully paid ordinary shares in the Company.
Element 25 also stated that in case an eligible shareholder held shares as a 'custodian', the offer under the SPP would be made to the 'custodian' and subject to several conditions, the 'custodian' was to have the discretion to extend the offer to relevant beneficiaries.
Furthermore, new shares issued under the SPP will rank equally with all fully paid ordinary shares on issue.
E25 quoted $ 0.420 on 23 July 2020 (3:40 PM AEST). The stock has delivered YTD returns of 158.82 %.
To know about Element 25’s impressive quarterly activities report for the quarter ending 30 June 2020, PLEASE READ: Element 25 Reports “Excellent Progress” in June Quarter, Stock Riding High
(Note: All currency in AUD unless specified otherwise)