Ann: Element 25 Commences Butcherbird Stage 2 Expansion, page-22

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srood

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13/02/24

17:21

Post #: 72386683
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Originally posted by srood: ↑

I emailed Justin in regards to a couple of queries in relation to Funding, (namely the DoE aspect) and further Off takes.
I wasn't requesting anything market sensitive of course, simply what's on the table. The response was quick and provided some promising info,

With regards to the US DoE funding in Louisiana that's being developed with offtake and finance support from General Motors and Stellantis. The DoE provides two avenues for funding of a project of this type, namely grant funding under the MESC programme and concessional loan funding under the ATVM programme. Both of these options are on the table and are possible outcomes being worked on/developed.

For the Butcherbird Stage 2 expansion, the funding is being sourced locally via a number of traditional project financing avenues as well as offtake related funding (prepay and royalty style instruments) as well as potentially involvement from NAIF. The NAIF involvement would indicate the news late last week with Butcherbird/E25 project being added to the Critical Minerals List by the Government for it HPMSM product is also in the works. See below.

When asking about whether a third offtake partner is on the cards, the answer was a straight yes. They are still very much in discussions with a number of potential offtake partners for the balance of material not committed to Stellantis and GM.

All in all am satisfied with the response. Its a horrid time across the ASX for resource Juniors not just those in Lithium and battery related projects. My portfolio resembles more or less a blood bath (except my uranium plays). Shorts are having a field day and as posted the other day E25 has had its shorting pickup again as of early January. Little comfort i know but at least we are still very much on track imo.

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Sent a follow up email last week and recieved a reply from Justin. In a nutshell asked what shareholders can expect on the newsflow front over the coming months and whether a 3rd Offtake partner would be US based. Reply below.

Potential catalysts (very brief)
- expansion plan execution
- manganese price recovery
- financing for HPMSM
- further HPMSM offtake
- Resource expansion at Butcherbird
- lithium exploration at Lake Johnston

Also, with regards to further offtakes, is it likely to be a North American manufacturer? Are further off takes required in order to secure funding? A general timeline.
- we are talking to potential offtake partners in the US, EU and Asia, both OEMs, PCAM and CAM manufacturers. Discussions are progressing well but exact timing difficult to predict.

E25 Price at posting: 26.0¢ Sentiment: Buy Disclosure: Held
11 Upvote

2 Great analysis

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