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- Element 25 (E25) has entered a non-binding term sheet with Semeru Energy for the offtake of manganese ore produced at its Butcherbird Project in WA
- Under the agreement, Semeru will purchase 50 per cent of the manganese ore produced from the second stage of the Butcherbird development
- The agreement will see Semeru purchase between 175,000 and 200,000 tonnes of the product per year
- The term sheet provides the parties with an exclusive period until June 2021, with the companies to use this time to finalise definitive agreements
- Element 25 is up 8.39 per cent and trading for $1.49 per share
Element 25 (E25) has entered into an agreement with Singapore based company Semeru Energy for the offtake of manganese ore produced at the Butcherbird Project in WA.
Agreement
Semeru will purchase 50 per cent of the manganese ore produced from the second stage of the Butcherbird Project development.
The companies have signed a non-binding term sheet which allows between 175,000 and 200,000 tonnes of the product to be bought per year.
Under the agreement, Semeru will provide US$5 million (nearly A$7 million) in project finance to fund the company’s expansion plans.
The term sheet also provides the parties with an exclusive period until June 2021, during which the companies will finalise definitive agreements.
Project
Butcherbird is Australia’s largest onshore manganese resource and includes large tonnages of near-surface manganese oxide ore in seven deposits.
The project sits on the Great Northern Highway and the Goldfields Gas Pipeline providing both logistics and energy solutions.
Element 25 is also aiming to integrate renewable energy into the power solution to minimise the carbon intensity of the project, as well as energy costs.
While the company also recently completed a pre-feasibility study at Butcherbird to develop the deposit to produce manganese concentrate for export.
Element 25 is up 8.39 per cent and is trading for $1.49 per share at 12:48 pm AEDT.
