AI assistant
ELEMENT 25 LIMITED — Capital/Financing Update 2023
Apr 30, 2023
64810_rns_2023-04-30_6a4a98ae-cd66-4820-bdb0-852df58c96a9.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
ANNOUNCEMENT | 1 MAY 2023 | ASX: E25
STELLANTIS AND E25 EXTEND KEY DATES IN FUNDING AND OFFTAKE AGREEMENT
On 9 January 2023, Element 25 Limited ( E25 or Company ) ( ASX:E25 ) announced the signing of a binding agreement ( Agreement ) with Stellantis N.V. ( Stellantis ) to supply battery-grade high purity, manganese sulphate monohydrate ( HPMSM ) from E25’s proposed USA-based HPMSM processing facility.
The Agreement combines take or pay offtake commitments for 45Kt of HPMSM from the facility over five years with US$30M in two tranches of project funding towards the facility capital cost. Tranche 1 of the funding comprises a US$15M equity investment in E25 . The further key commercial terms are outlined in detail in Appendix A to the announcement in January[1] .
Importantly several of the conditions precedent to the Agreement ( CPs ) were originally set to expire on 30 April 2023, specifically:
CPs for the overall transaction:
-
i. Stellantis completing a technical due diligence process to its satisfaction. [ NOW COMPLETED ]
-
ii. A decision by the E25 board to proceed with the project based on the FS. [ NOW COMPLETED ]
-
iii. E25 completing a successful HPMSM Feasibility Study ( FS ) for a USA-based HPMSM facility to Stellantis’ reasonable satisfaction.
CP for the Share Subscription Agreement and Offtake Agreement – by 30 April 2023
- iv. E25 securing a minimum of US$100M project financing.
The Agreement also provides for Stellantis to have 20 days to review the FS prior to accepting it in satisfaction of condition (iii) above. The current expiry date would not have provided the allocated 20 days for this review. The period for this review has now been extended to 15 May 2023.
E25 are also pleased to advise that the parties have also agreed to extend the expiry dates for the CPs listed above to 30 June 2023 to provide sufficient time for the FS review and for the satisfaction of the remaining CPs to alllow for the first tranche of project funding being US$15M to be completed.
Company information, ASX announcements, investor presentations, corporate videos, and other investor material in the Company’s projects can be viewed at: www.element25.com.au.
| Justin Brown | Media Inquiries: | ||
|---|---|---|---|
| Managing Director | Nathan Ryan | ||
| Email: [email protected] | Email: [email protected] | ||
| Phone: +61 (8) 6375 2525 | Phone: +61 (0) 420 582 887 |
1 Reference: Company ASX Release dated 9 January 2023
ABN: 46 119 711 929 T: +61 8 6375 2525 E: [email protected]
W: element25.com.au
Element 25 Limited