Element 25 Ltd (ASX:E25) has reached agreement with St Barbara Ltd (ASX:SBM) for the sale of its Green Dam Project in Western Australia.
Pursuant to the sale agreement, St Barbara will acquire 100% of the Green Dam Project for $700,00 cash.
Share in future exploration success
St Barbara will also grant Element 25 a 2% net smelter royalty on all future production from the Green Dam Project.
The retained royalty ensures that shareholders will benefit from future exploration success as St Barbara takes the project forward.
Importantly, the additional cash will provide important working capital as Element 25 completes the pre-feasibility work at its 100% owned Butcherbird High Purity Manganese Project in Western Australia.
The asset sale represents another important incremental step in Element 25’s stated strategy to rationalise its project portfolio to allow the technical team to focus on the development of the high purity manganese business at Butcherbird.
READ: Element 25 completes PFS metallurgical drilling at Butcherbird Manganese Project
The company recently completed metallurgical drilling to extract bulk sample material for test work at its Butcherbird Manganese Project.
This program was undertaken as part of Butcherbird's ongoing pre-feasibility study and was also designed to demonstrate the scalability of the processing flowsheet developed in conjunction with the CSIRO.
The PFS, which aims to confirm the commercial potential of the project, is scheduled for completion in mid-2019.