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Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) advises that the closing date for the current Share Purchase Plan (SPP)1 will be extended until 5:00pm, Wednesday, 26 June 2024 Australian Western Standard Time (AWST).
- Extension of Element 25 Share Purchase Plan with revised closing date, Wednesday, 26 June 2024 at 5:00pm AWST.
- Funds raised from the Share Purchase Plan will enable the Company to progress its current prime projects at the Butcherbird mine site (located in the southern Pilbara region of Western Australia), as part of the Butcherbird Stage 2 Expansion Project, as well as continuing to support the high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV.
- Shareholders can request an electronic copy of their personalised Share Purchase Plan form via Element 25’s share registry, Automic Group.
Element 25 has been made aware by shareholders that postal deliveries relating to the SPP have taken longer than anticipated. The extension of the SPP will allow eligible shareholders additional time to consider their position and provide sufficient time to submit their applications and payment.
Under the SPP, the Company will offer eligible shareholders, who were registered shareholders as at 5:00pm (AWST) on Monday, 20 May 2024 (Record Date) the opportunity to apply for up to $30,000 of new fully paid ordinary shares (New Shares). New Shares will be issued at $0.27 per share, equivalent to a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days prior to the announcement of the SPP1.
A revised indicative timetable with the new closing date for the SPP is as follows:
REVISED SPP TIMETABLE
Click here for the full ASX Release
This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25:AU
Element 25
Overview
Element 25 (ASX:E25,OTCQX:ELMTF) is a manganese-focused company with 100 percent ownership of the largest onshore manganese deposit in Australia, which is currently producing high-quality manganese concentrate. The company’s Butcherbird Mine in Western Australia is currently producing around 365,000 tons per annum. The company is advancing towards 1 million tons (Mt) per annum by optimizing its engineering processes. Element 25 (E25) has set the pace by getting up and running quickly.
Element 25 has also moved quickly to progress its ambitions to be a globally significant producer of ethical high-purity manganese sulphate monohydrate (HPMSM) for supply to the fast growing EV battery raw material supply chains. The company has signed a binding agreement with Stellantis NV (NYSE:STLA) to supply battery-grade HPMSM from E25’s proposed USA-based HPMSM processing facility. Stellantis has further completed its first US$15-million equity investment in E25 in July 2023 towards the development of a battery-grade HPMSM facility in the USA.
Element 25 has also entered an off-take deal with General Motors (GM) to supply the car manufacturer up to 32,500 metric tons of manganese sulfate to support GMs annual production of more than 1 million electric vehicles in North America. Under this agreement, GM will provide an US$85-million loan to E25 to partially fund the construction of the new facility in Louisiana, USA, which will produce battery-grade manganese sulfate. Expected to be the first of its kind in the US, the facility will process manganese concentrate from E25’s mining operations in Western Australia to produce HPMSM.Manganese is Building Momentum
Sales of EVs have exceeded 10 million in 2022 with market analysts expecting the momentum to continue in 2023 and beyond. It’s clear that consumers and automakers are embracing EVs worldwide, with gigafactories springing up across the globe to support the EV transition. Yet, EVs require significant materials to support the increasing demand.
Manganese is essential in manufacturing the nickel-manganese-cobalt cathodes EVs require and is the cheapest and most abundant material available. Additionally, nickel and cobalt have significant supply constraints, while manganese does not. The relative abundance and high value in the use of manganese as a cathode material has prompted automakers such as Tesla, Volkswagen and Stellantis to turn to high-manganese cathodes to satisfy their supply chain requirements.
Manganese also has strong existing demand for usage in steel, aluminum products and specialty alloys. There is no substitute for the element in steel. Mining companies focusing on this vital element are uniquely positioned to serve both established and emerging industries.
The Future has Always Been Electric
Element 25 is committed to delivering on its strategy of producing battery grade HPMSM for EV batteries to power the global transition away from fossil-fuel-powered mobility.
The advancement of EV batteries requires a vast amount of cathode materials. Put simply, nickel and cobalt supplies simply cannot meet projected demand for New Energy Vehicle (NEV) growth.
By 2040 it is estimated that 58 percent of new vehicles will be EV or hybrid.
As demand continues to rise, EV battery makers globally are choosing to adopt manganese-rich cathode designs for safer, more cost-effective battery solutions and E25’s high-purity manganese strategy is ideally placed to feed these surging markets.
Advanced flowsheet development work undertaken in 2019 and 2020 has confirmed a simple, proprietary leach process for E25 ores which, when combined with offsets, will target the world’s first zero-carbon manganese for EV cathode manufacture. Flowsheet optimization for inclusion in upcoming feasibility studies is ongoing.
Strong ESG Credentials
Element 25 understands the importance of an excellent environmental, social and governance (ESG) rating for serving the EV market, as this rating directly reflects on the companies it supplies. The company is working towards producing zero-carbon, high-purity manganese by leveraging sustainable technologies at every step in its process through its Zero Carbon Manganese campaign. This campaign includes sustainable extraction, using renewable energy, low-carbon processing and carbon offsets. Element 25 has partnered with Circulor to provide real-time insights into its ESG status.
Element 25’s Butcherbird Mine has a Joint Ore Reserves Committee (JORC) compliant resource estimate indicating over 260 megatonnes of manganese ore. This significant deposit is Australia's largest onshore manganese deposit, with an estimated mine life of 42 years. The mine does not require blasting or dewatering, instead leveraging a simple mining and processing wash plant.
Importantly, Element 25’s board and management team has decades of experience across a range of key sectors including mining, legal expertise, mineral project development, corporate administration and operational excellence. The management team’s track record of success provides the company with a great platform to deliver on its planned milestones as E25 positions itself as a leading manganese player on the global stage.
Company Highlights
- 100-percent ownership of Australia's largest onshore manganese mine – the Butcherbird Manganese Deposit – comprising more than 260 million tons (Mt) of manganese ore in JORC resources.
- Long mine life of 42 years using only 20 percent of the global resource, significant potential to expand with further drilling.
- Currently producing high-quality manganese lump concentrate for the steel industry.
- Multi-staged expansion strategy to increase concentrate production and move into downstream processing to produce high-purity manganese sulphate monohydrate (HPMSM) as electric vehicle (EV) fuel for lithium-ion batteries.
- Expansion plans to increase ore production to 1 Mt per annum well advanced.
- Off-take and funding agreement with General Motors (GM) to supply the EV manufacturer up to 32,500 metric tons of HPMSM annually to support GM’s annual production of more than 1 million EVs in North America.
- GM to provide US$85 million in project finance for the HPMSM facility in Louisiana, USA.
- Offtake and funding agreement with global automaker Stellantis NV (NYSE/MTA/Euronext Paris:STLA) includes recently completed US$15-million equity investment to fund HPMSM short and medium term project execution costs.
- STLA is now Element 25’s largest shareholder with a 10.2-percent shareholding.
- STLA has committed to offtake for 15 percent of HPMSM production from the Louisiana facility.
- Element 25 is led by a management team with decades of experience in mineral project management, corporate administration and international law.
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Australia’s Largest Manganese Resource Driving Multiple Growth Pathways Towards a Zero-Carbon EV Battery-grade Manganese Future
Electric Metals Announces Positive PEA for the 100% US Domestic North Star Manganese Project Providing 100% U.S. Domestic Supply of HPMSM, Post-Tax NPV10% of US$1.39 Billion, IRR of 43.5%, and 23-Month Payback
Electric Metals (USA) Limited ("EML" or the "Company") (TSXV:EML)(OTCQB:EMUSF) is pleased to announce the results of its Preliminary Economic Assessment ("PEA") for the 100% owned North Star Manganese Project ("North Star" or the "Project") in Emily, Minnesota, prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects by Forte Dynamics, Inc. ("Forte"), Fort Collins, Colorado.
The PEA demonstrates robust economics, confirming North Star's potential to become the first fully U.S. domestic producer of high-purity manganese sulphate monohydrate ("HPMSM"), a critical material for lithium-ion batteries. As the U.S. remains 100% import-reliant on manganese, the Project also supports the Presidential Executive Orders on Critical Minerals, reinforcing the strategic importance of EML and its flagship Emily Manganese Deposit in Minnesota-the highest-grade manganese deposit in North America and a vital potential domestic source for EV batteries, energy storage, steelmaking, and defense.
The PEA highlights a post-tax NPV10% of US$1.390 billion, an after-tax IRR of 43.5%, and a rapid payback of only 23 months from the start of production operations.
PEA Highlights - Base Case
- Base Case Economics: After-tax NPV10% of US$1.390 billion, after-tax IRR of 43.5%, and average annual after-tax cash flow of US$249.6 million.
- Updated Resource Estimate: Based on a 10% manganese cut-off, the Project reports 7.6 million tonnes of Inferred Resources at 19.1% Mn and 3.7 million tonnes of Indicated Resources at 17.0% Mn.
- Ore Grades: Average manganese grade of 18.9% during the first 5 years of production, with a Life-of-Project average grade of 17.4% (10% cut-off).
- Project Life: 25-year Base Case, producing 4.3 million tonnes of battery-grade HPMSM. The Project may be extended through additional drilling of known mineralized zones that were originally drilled in the 1940s and 1950s and/or by utilizing lower-grade material.
- Capital Expenditures: US$474.8 million initial capital for mine and processing facilities, US$150.0 million for a processing plant expansion, and US$276.0 million for sustaining and closure costs.
- Ore Production: Average annual mined ore of 368 thousand tonnes, with a nominal mining capacity of 400 thousand tonnes per year.
- HPMSM Production: Average annual production after expansion of 180,331 tonnes of HPMSM, with a nominal after expansion plant capacity of 200 thousand tonnes per year, based on a overall recovery of manganese to product of 90%.
- Pricing Assumption: Base Case assumes US$2,500 per tonne of HPMSM held constant for LOP.
- Project Timeline: Total project life of 25 years from the start of capital spending, including a 2-year construction period. Mine and processing operations extend 23 years, incorporating a 3-year ramp-up to full production for both mine and the processing plant expansion.
- Optimization Opportunities: Potential upside exists in geology and exploration, mining, concentration, transport, and processing.
Brian Savage, CEO of Electric Metals, commented: "The results of this PEA confirm that the North Star Manganese Project has the potential to become the first fully domestic source of high-purity manganese sulphate monohydrate in the United States. With robust economics-including an after-tax NPV of US$1.39 billion, IRR of 43.5%, and a payback period of under two years-North Star represents a strategically significant opportunity not only for our shareholders, but also for the U.S. as it seeks secure, low-carbon supplies of critical battery materials. This milestone underscores the importance of the Emily Manganese Deposit in supporting the clean energy transition, U.S. manufacturing, and national security."
Technical Summary:
Updated Mineral Resource Estimate | ||||
Resource Category | Thousand Tonnes | Mn Grade % | Fe Grade % | Si Grade % |
Indicated Resource | 7,600.4 | 19.07 | 22.33 | 30.94 |
Inferred Resource | 3,725.3 | 17.04 | 19.04 | 30.03 |
Mineable Resource Estimate | ||||
North Star Mn Project | Thousand Tonnes | Mn Grade % | Fe Grade % | Si Grade % |
Mined / Shipped Ore | 8,826.2 | 17.43% | 19.84% | 37.24% |
Operating Cost | Per Tonne of Ore | Per Tonne of HPMSM | LOP Operating Cost |
Mining | $94.30 | $192.31 | $832.31 M |
Transport | $90.55 | $184.66 | $799.21 M |
Processing | $200.00 | $407.87 | $1,765.24 M |
G & A | $15.00 | $30.59 | $132.39 M |
TOTAL | $399.85 | $815.44 | $3,529.15 M |
Capital Expenditures | Life of Project |
Initial Capital Expenditures (inc 25% capital contingency) | $474.81 M |
Processing Plant Expansion (inc 25% capital contingency) | $150.00 M |
Sustaining Capital & Closing Costs | $276.03 M |
Working Capital | $10.00 M |
Mining Operations (tonnes) | HPMSM Plant Operations (tonnes) | ||||
Total Production | Annual Production | Daily Production | Total Production | Annual Production | Daily Production |
8,826,000 | 368,000 | 1,143 | 4,328,000 | 180,000 | 174 |
Project Sensitivities
Sensitivity Study on NPV 10% After-Tax (- or + against the Base Case) | |||
Percent of Base Case | -25% | Base Case | +25% |
HPMSM Price | $712.03 M | $1,390.15 M | $2,062.66 M |
Capital Cost | $1,531.93 M | $1,390.15 M | $1,248.37 M |
Operating Cost | $1,591.38 M | $1,390.15 M | $1,188.60 M |
Sensitivity Study on IRR After-Tax (- or + against the Base Case) | |||
Percent of Base Case | -25% | Base Case | +25% |
HPMSM Price | 28.4% | 43.5% | 57.4% |
Capital Cost | 57.5% | 43.5% | 34.8% |
Operating Cost | 47.6% | 43.5% | 39.3% |
Project Summary
EML's North Star Manganese Project involves the mining of high-grade manganiferous iron ore from the Emily Manganese Deposit in Emily, Minnesota, and the production of high-purity manganese sulphate monohydrate (HPMSM), a critical input for lithium-ion batteries used in electric vehicles, energy storage systems, and advanced electronics. All operations will be based in the United States, providing an entirely domestic supply chain for U.S. battery manufacturers.
The Emily Manganese Deposit is located in the Emily District of the Cuyuna Iron Range in central Minnesota, approximately 230 km (143 miles) north of Minneapolis. The district is part of the Superior-type banded iron formations of the Lake Superior region, which also include the Marquette, Gogebic, Mesabi, and Gunflint Iron Ranges.
Iron-bearing deposits in the Cuyuna Range were discovered in 1904. Mining of iron and manganiferous ores occurred from 1911 to 1967, with manganese recovered as part of iron ore extraction. Although significant manganese resources were identified at the Emily Deposit as early as the 1940s by Pickands Mather Mining Company and expanded by U.S. Steel in the 1950s, the deposit itself was never mined. Later confirmation came from the U.S. Bureau of Mines, the Minnesota Geological Survey, and multiple companies up to 2020, when Electric Metals consolidated the land position.
From April to July 2023, Electric Metals engaged Big Rock Exploration of Stillwater, Minnesota, to conduct a combined confirmation and step-out drilling program. A total of 29 PQ and HQ diamond drill core holes were completed for 3,995 meters (13,107 feet). The resulting geological and assay data, validated by Forte Dynamics, were used in the PEA's Mineral Resource Estimate.
The mineralized horizons consist of manganese and iron oxides, silica, residual clays, and cherts. The deposit includes five layered to massive iron-manganese zones, containing higher-grade and lower-grade manganese oxide and manganese carbonate mineralization.
The PEA mine plan assumes mechanized underhand cut-and-fill mining, with access via two vertical shafts: an 18 foot (5.5 meters) diameter production shaft capable of hoisting 1,500 tonnes of ore and 250 tonnes of waste per day, and a spiral ramp providing access every 98 feet (30 meters) vertically. Mining targets 400,000 tonnes per year of ore.
Ore will be transported by truck and rail to an HPMSM processing facility. EML is evaluating multiple candidate sites based on chemical input costs, power rates, transport logistics, permitting, workforce availability, incentives, and proximity to U.S. battery manufacturers.
Metallurgical test work performed by Kemetco Research in Richmond, British Columbia, recovered 95% to 98% of manganese into solution. For the PEA, a conservative overall recovery rate of 90% to final product was assumed. The conceptual flowsheet envisions phased development: an initial 100,000 tpa throughput, expanding to 200,000 tpa by Year 5. Final HPMSM product (99% purity) will be delivered to customers via truck and/or rail in containerized shipments.
Pricing assumptions for HPMSM are based on independent market analysis by CPM Group (New York), with a base case long-term price of US$2,500 per tonne, held constant for the life of the Project.
North Star Manganese Project - Strategic Significance
- First HPMSM project produced entirely in the U.S.
- Aligns with U.S. national energy security and clean energy transition goals.
- Secure, low-carbon domestic source of critical manganese chemicals and metals for EVs, energy storage, defense, and advanced technologies.
- Supported by strong government policy momentum favoring domestic critical mineral supply chains.
Next Steps
- Proceed to Pre-Feasibility and Feasibility Study activities in 2026.
- Collaborate with local communities, native tribes, and regional businesses on Project issues.
- Advance permitting with the State of Minnesota regulators and U.S. federal agencies.
- Engage with Tier-1 EV and battery manufacturers for offtake agreements.
- Optimize extraction and processing systems, and evaluate expansion opportunities.
A National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report entitled "NI 43-101 Technical Report, Preliminary Economic Assessment of the Electric Metals' North Star Manganese Project, Crow Wing County, Minnesota, USA" with an effective date of August 15, 2025 will be filed on SEDAR+ at www.sedarplus.ca under the Company's profile within 45 days of this news release.
Qualified Persons
The PEA was prepared in accordance with NI 43-101 by Forte Dynamics, Inc. The scientific and technical information in this news release has been reviewed and approved by Donald Hulse, SME-RM and Deepak Malhotra, SME-RM, of Forte Dynamics, Inc., each of whom is a "qualified person" under NI 43-101.
About Electric Metals (USA) Limited
Electric Metals (USA) Limited (TSXV: EML; OTCQB: EMUSF) is a U.S.-based critical minerals company advancing manganese and silver projects that support the clean energy transition. The Company's principal asset is the North Star Manganese Project in Minnesota, the highest-grade manganese deposit in North America. The Project has been the subject of extensive technical work, including a Preliminary Economic Assessment prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Electric Metals' mission is to establish a fully domestic U.S. supply of high-purity manganese chemical and metal products for the North American electric vehicle battery, technology, and industrial markets. With manganese playing an increasingly important role in lithium-ion battery formulations, and with no current domestic production in North America, the development of the North Star Manganese Project represents a strategic opportunity for the United States, the State of Minnesota, and the Company's shareholders.
For further information, please contact:
Electric Metals (USA) Limited
Brian Savage
CEO & Director
(303) 656-9197
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions.
Such statements in this news release include, without limitation: the Company's mission to become a domestic U.S. producer of high-value, high-purity manganese products for the North American electric vehicle battery, technology and industrial markets; that manganese will continue to play a critical role in lithium-ion battery formulations; that with no current domestic supply or active mines for manganese in North America, the development of the North Star Manganese Project represents a significant opportunity for America, Minnesota and for the Company's shareholders; and planned or potential developments in ongoing work by Electric Metals.
Forward-looking information also includes statements with respect to the results of the Preliminary Economic Assessment ("PEA"), including but not limited to estimates of NPV, IRR, capital and operating costs, mine life, production, recovery rates, timelines, and pricing assumptions. The reader is cautioned that the PEA is preliminary in nature, includes Inferred Mineral Resources, and is subject to a high degree of uncertainty. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized.
These statements address future events and conditions and involve inherent risks, uncertainties and other factors that could cause actual events or results to differ materially from those estimated or anticipated. Such risks include, but are not limited to: failure to obtain all necessary stock exchange, regulatory, environmental and governmental approvals; risks relating to the accuracy of resource estimates; the speculative nature of Inferred Resources; risks relating to metallurgical test work, recoveries and process design; delays in or failure to advance to more detailed studies, including a Feasibility Study; the ability to secure project financing on reasonable terms; risks relating to construction, cost overruns and schedule delays; risks related to securing offtake agreements; risks relating to the availability and cost of infrastructure, reagents, power, labor and transportation; fluctuations in commodity prices and exchange rates; potential changes to U.S. government policy or support for domestic critical mineral development; general market conditions and investor appetite; and risks associated with exploration, development and mining activities.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, updated conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances as of the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
