Element 25 (ASX:E25) has executed a binding $50 million finance facility agreement with the Northern Australia Infrastructure Facility (NAIF) for its Butcherbird Expansion Project in Western Australia.
The facility comprises a $42.5 million term facility with an 11-year tenor and a $7.5 million cost overrun facility with a three-year tenor to expand manganese concentrate production capacity to approximately 1.1 million tonnes per annum.
Managing Director Justin Brown says the execution of the agreement marks a major milestone for the company and Butcherbird.
“Reaching contractual close means the project now has a binding financing framework and represents a significant de-risking event,” Brown says.
“We appreciate the strong support of NAIF and the Australian Government throughout the assessment and documentation process.
“Butcherbird is a strategically important critical minerals project with the potential to support both traditional manganese markets and growing demand for battery materials.”
The financing package provides long-term, non-dilutive capital and reduces the company’s immediate equity funding requirements. Both facilities remain subject to satisfaction or waiver of conditions precedent before drawdown.
Expanded production at Butcherbird is intended to supply traditional markets and provide feedstock for Element 25’s planned battery-grade high-purity manganese sulphate monohydrate facility in Louisiana, supported by a US$166 million ($230.14 million) grant from the US Department of Energy.
The company is now focused on satisfying conditions precedent to financial close and first drawdown while advancing project delivery.
Element 25 operates the Butcherbird Manganese Project in WA.
Write to Paula Fabe at Mining.com.au
Images: Element 25
