Element 25 secures $50M expansion deal
- Element 25 executed a binding $50 million finance facility agreement with the Northern Australia Infrastructure Facility for its Butcherbird Expansion Project.
- The non-dilutive debt package comprises a $42.5 million term facility alongside a dedicated $7.5 million cost overrun facility.
- The expanded processing framework aims to increase local manganese concentrate production capacity from 360,000 tonnes to approximately 1.1 million tonnes per annum.
Element 25 (ASX:E25) has executed a binding facility agreement for an $50 million financing package provided through the Northern Australia Infrastructure Facility to support its expansion project in Western Australia.
The binding agreement converts a previously committed funding proposal from the government lender into a formal contractual framework.
“Execution of the definitive NAIF facility agreement marks a major milestone for Element 25 and the Butcherbird Expansion Project,” said Element 25 Managing Director Justin Brown.
Under the agreed debt terms, the transaction delivers long-tenor, non-dilutive project financing alongside dedicated cost overrun support.
The company stated that reaching contractual close represents a significant de-risking event as management turns its focus towards satisfying the remaining conditions precedent for the first funding drawdown.
Following the announcement, the Element 25 share price was up 1.8% at $0.28.
The Butcherbird operation sits in the southern Pilbara region of Western Australia and holds Australia's largest onshore manganese resource.
