Element 25 (ASX:E25) has secured a senior debt facility of up to $50 million from the Australian Government’s Northern Australia Infrastructure Facility (NAIF) to expand the Butcherbird Manganese Project in Western Australia.
NAIF will provide $42.5 million in senior debt and $7.5 million cost overrun facility to support the company’s plans to expand Butcherbird’s production capacity to 1.1 million tonnes per year of manganese oxide concentrate.
Butcherbird’s expansion will enable it to supply manganese concentrate feedstock for Element 25’s planned battery grade, high-purity manganese sulphate monohydrate processing facility which will be built in Louisiana, US.
The NAIF financing facility is subject to customary legal due diligence and executing formal contracts. The balance of funds are being sourced from a range of potential financing groups.
Managing Director Justin Brown says securing this support reaffirms the government’s commitment to develop Australia’s critical minerals sector and Butcherbird’s economic importance.
“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,” Brown says.
Element 25, which has a market capitalisation of $44.57 million, has engaged with key suppliers to support the project. This includes engineering, mining and haulage contractors, as well as representatives from the Pilbara Ports Authority in regards to mining and logistics support services.
Key commercial contracts will be finalised in accordance with the project plan and schedule, which will deliver the project in 2026.
Element 25 plans to produce up to 135,000 tonnes of high-purity manganese sulphate monohydrate per year for US electric vehicle supply chains in a first-of-its-king processing facility in Louisiana.
The company notes all necessary approvals are in place for Butcherbird, following receiving final statutory approval, as well as works approval of its mining proposal and mine closure plan.
All other required approvals and access agreements are in place and established from the project’s stage one pilot operations.
Write to Aaliyah Rogan at Mining.com.au
Images: Element 25
