Element 25’s Share Purchase Plan Oversubscribed, Funds to Accelerate Butcherbird Development

  • Jul 23, 2020 AEST
  • Team Kalkine
Element 25’s Share Purchase Plan Oversubscribed, Funds to Accelerate Butcherbird Development


  • 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).

GOOD READ: Element 25’s Butcherbird Manganese Project: Key Development Milestones To Date

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.

SPP Background

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.

ALSO READ: Element 25 Launches Placement & SPP to Hasten Developments at Butcherbird

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)


The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. All pictures are copyright to their respective owner(s). Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK