Manganese producer and explorer Element 25 (ASX:E25) has received its first US$15 million equity investment from global automaker Stellantis (BIT:STLAM).
Element 25, which has a $109.17 million market capitalisation, says the payment of the first investment tranche was delivered after certain conditions of an agreement between the two companies were satisfied.
Element 25 reports in accordance with the terms of the agreement, it has issued just under 22.570 million shares to Stellantis at $1 per share for total proceeds of $22,569,967 million.
These funds will be applied to planned engineering and construction activities to advance the company’s proposed US-based high-purity manganese sulphate monohydrate (HPMSM) processing facility, which is being planned to be built in Louisiana, US.
Element 25 views this first payment as an ‘important step’ in the overall project financing and, in conjunction with its recently announced US$85 million financing facility with General Motors (NYSE:GM), now takes project commitments to US$115 million from 2 global electric vehicle (EV) manufacturers.
The company notes this agreement with Stellantis combines take or pay commitments for the supply of 45,000 tonnes of HPMSM from the facility over 5 years, as well as US$30 million in 2 tranches of project funding towards the facility capital cost.
Element 25 is an ASX-listed manganese producer focused on operating its ‘world-class’, wholly-owned Butcherbird Manganese project in Western Australia, as well as developing capabilities to produce HPMSM for the EV market.
Write to Adam Drought at Mining.com.au
Images: Element 25 Ltd
