- According to an offtake agreement, Element 25 (E25) has sold its first batch of manganese concentrate from the Butcherbird Project to OM Holdings (OMH)
- OMH said it would purchase 100 per cent of the manganese ore during the first stage of development, up to 365,000 tonnes annually
- The sales apply to manganese ore at a grade of between 30 and 35 per cent
- The Butcherbird mine has now moved to a 24-hour processing operation as part of its planned ramp-up activities
- Element 25 remained flat yesterday, closing at $2.40 per share
According to an offtake agreement, Element 25 (E25) has sold its first batch of manganese concentrate from the Butcherbird Project to OM Holdings (OMH).
Under the terms of the five-year deal, which was agreed to in October last year, OM Materials — a wholly owned subsidiary of OMH — said it would purchase 100 per cent of the manganese ore from the project during the first stage of development, up to 365,000 tonnes annually.
It applies to manganese ore at a grade of between 30 and 35 per cent, with pricing to be set according to that listed by commodities tracker Fastmarkets and adjusted for delivery.
“Delivering the first material under the offtake agreement within 12 months of publishing the Pre-Feasibility Study is a testament to the hard work and dedication of the project team,” said Managing Director Justin Brown.
“This is another important milestone for the project and company and we are excited to be heading for our first shipment of Butcherbird’s material to our offtake partners. “
The Butcherbird mine has now moved to a 24-hour processing operation as part of its planned ramp-up activities and will produce accelerated volumes to facilitate the first delivery, which is expected to occur in June.
Meanwhile, Element 25 will begin its stage two expansion of its concentrate business, followed by a stage three development to convert the concentrate material into high-purity manganese sulphate monohydrate for electric vehicle batteries.
Element 25 remained flat yesterday, closing at $2.40 per share.