Successful A$35 Million Placement To Fund Company Growth

Element 25 Limited (E25 or the Company) (ASX:E25) is pleased to announce it has received firm commitments for a A$35 million placement at A$1.12 per share (Placement). The placement was heavily oversubscribed with E25 management and the Joint Lead Managers (JLM’s) agreeing to increase the raise to $35million (minimum $30M).

Funds raised from the Placement will fund the Company’s battery grade High Purity Manganese Sulphate (HPMSM) project feasibility works, operating cost reduction capital costs, engineering optimisation works and working capital.

Petra Capital and Blackwood Capital acted as Joint Lead Managers and Joint Bookrunners to the Placement.

Managing Director, Mr Justin Brown said:

“We are delighted with the support for the placement and welcome a number of highly credentialled new investors to the register. On behalf of the Board of Directors, I would also like to thank our existing security holders for their ongoing support.

Placement funds will assist in the continued optimisation of our Butcherbird Manganese Project, as we progress our staged development plan. We are also successfully continuing our negotiations with potential offtake partners, including offtake financing strategies, which remain on schedule to be finalised in line with feasibility study completion in December 2022.

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.”

Placement Overview

E25 has received firm commitments for A$35 million in gross proceeds via a Placement at an issue price of A$1.12 per shares (Placement Price). The Placement Price of A$1.12 per share represents a 22.0% discount to the last traded price and a 13.1% discount to the 10 traded day VWAP of the Company’s shares to 15 November 2022.

E25 will issue a total of 31,250,000 new shares (15,948,964 under ASX Listing Rule 7.1 and 15,301,036 under ASX Listing Rule 7.1A).

The Placement is expected to settle on or around 22 November 2022 with new shares to be issued on 23 November 2022.

Element 25 Team Strategy

E25’s Operations team continues to focus on delivering sustained nameplate production as well as on the Stage 2 expansion of the concentrate business. This work is being undertaken in parallel with the Battery Materials division to deliver the Stage 3 development of a conversion facility to convert the concentrate material into HPMSM for EV batteries to power the global transition away from fossil fuel powered mobility.

Manganese is emerging as an increasingly important ingredient for EV batteries, with potential supply constraints for nickel and cobalt forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV industry in coming years¹.

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