- Element 25 (E25) has closed its heavily oversubscribed share purchase plan and is now well-placed to advance work at its Butcherbird Manganese Project
- The company had originally sought to raise up to $1.5 million but, due to significant shareholder demand, closed the plan by accepting all shareholder applications for a total of more than $3.2 million
- Under the terms of the plan, eligible shareholders were able to acquire up to $30,000 worth of shares at 40 cents each
- The funds will be used to make deposits for long lead time items and begin detailed engineering design processes
- Element 25 shares are down 1.19 per cent in early trade, priced at 41.5 cents per share
Element 25 (E25) has closed its heavily oversubscribed share purchase plan and is now well-placed to advance work at its Butcherbird Manganese Project.
According to an announcement on July 6, the Perth-based company had originally sought to raise up to $1.5 million. However, due to significant demand, Element 25 closed the plan by accepting all shareholder applications for a total of more than $3.2 million.
Under the terms of the plan, eligible shareholders were able to subscribe for up to $30,000 worth of fully paid ordinary shares at 40 cents each. This represented an 11.1 per cent discount over the company’s volume-weighted average share price at the time.
Justin Brown, Managing Director of Element 25, said the plan demonstrated the strong support for the company.
“The fantastic response from shareholders is welcomed by the board and I would personally like to thank all participating shareholders for their strong show of support.
“The result balances nicely the interest of existing shareholders with those of the new shareholders who joined the register in the placement completed earlier this month,” he added.
With the share purchase plan complete, the proceeds raised will be used to advance the development of Element 25’s wholly-owned Butcherbird Manganese Project located south of Newman in Western Australia. This is expected to include making deposits for long lead time items, as well as the commencement of detailed engineering designs.
The Butcherbird Manganese Project is considered to be Australia’s largest onshore manganese resource, and is thought to host 263 million tonnes of ore across seven large, near-surface deposits.
Element 25 shares are down 1.19 per cent in early trade, priced at 41.5 cents per share at 10:53 am AEST.