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- Element 25 (E25) receives firm commitments for a $35 million capital raise to fund company growth
- A total of 31.2 million new shares will be issued under the placement at $1.12 each, marking a 22 per cent discount to the last traded price
- With the fresh capital, the company plans to continue optimisation of its Butcherbird manganese project in Western Australia as development progresses
- Managing Director Justin Brown noted support from a number of highly credentialed new investors in addition to existing shareholders
- Shares in Element 25 are down 18.5 per cent trading at $1.17 at 11:45 am AEDT
Element 25 (E25) has received firm commitments for a $35 million capital raise to fund company growth.
Emerging from a trading halt, the company revealed a share placement offered to investors was heavily oversubscribed with management and the joint lead managers agreeing to increase the original amount from $30 million.
A total of 31.2 million new shares will be issued under the placement at $1.12 each, marking a 22 per cent discount to the last traded price prior to the halt.
With the fresh capital, Element 25 plans to continue optimisation of its Butcherbird manganese project in Western Australia as development progresses.
Specifically, the money will go towards project feasibility works, operating cost reduction capital costs, engineering optimisation works and working capital.
Element said negotiations are also underway with potential offtake partners which are set to be finalised in line with the completion of a feasibility study next month.
Managing Director Justin Brown noted support from a number of highly credentialled new investors in addition to existing shareholders.
“We are delighted with the support for the placement.
“This capital injection will allow the company to continue its rapid growth strategy centred around the world class Butcherbird project to supply both the traditional and new energy battery markets,” he said.
The placement is expected to settle by November 22, with new shares issued the following day.
Shares in Element 25 were down 18.5 per cent trading at $1.17 at 11:45 am AEDT.
