Element 25 (ASX:E25) Secures $50M Finance for Butcherbird Expansion
Financial Support
Element 25 has secured a senior debt finance facility of up to AU$50 million from the Northern Australia Infrastructure Facility (NAIF) for its Butcherbird Manganese Expansion Project in Western Australia’s Pilbara region. This includes AU$42.5 million in senior debt and an additional AU$7.5 million for potential cost overruns.
Project Overview
The Butcherbird Expansion Project aims to increase production capacity to 1.1 million tonnes per annum of manganese ore. The expanded operation will supply manganese concentrate for Element 25’s planned high purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, USA, which has received US$166 million in grant funding from the U.S. Department of Energy.
Product Development
Excess manganese concentrate will be sold to customers in the manganese alloy and steel industries. Element 25 is also in discussions with potential financiers to source the remaining project funds through mechanisms such as offtake prepayment, subordinated debt, and royalty financing.
Regulatory Approvals
The BBX project has received all necessary approvals under the WA Regulatory Framework from the Department of Water and Environmental Regulation and the Department of Energy, Mines, Industry Regulation and Safety. Additional access agreements, including water abstraction and heritage clearances, are in place from Stage 1 pilot operations.
Executive Comments
Managing Director Justin Brown stated, “Securing this support from the Federal Government’s Northern Australia Infrastructure Facility reaffirms the government’s commitment to developing Australia’s critical minerals sector and Butcherbird’s economic importance to Australia and the Pilbara region of WA. This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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