Element 25 Ltd’s (ASX:E25) continues to make excellent progress in relation to the development of the Butcherbird Manganese Project despite the restrictions brought about by COVID-19.
Despite some impact on the provision of services by third parties the company continues to progress the pre-feasibility study (PFS) for the project.
The company is also continuing to bring forward plans for a potential start of production via a low capex manganese concentrate export operation.
Preserving cash
This work is progressing while the company is also preserving as much cash as possible during the pandemic restrictions.
This includes issuing options to the managing director and non-executive directors and reducing the cash component of director fees by 20%.
This fee reduction is effective from April 11, 2020, and is conditional on shareholder approval being received.
The reduction will be for an initial period of six months and will be subsequently reviewed at this time and if required, will remain in place.
Schedule of options
The following options will be issued at an exercise price of 20 cents for a three-year term from the date of shareholder approval:
- Chairman Seamus Cornelius will receive 200,000 options,
- Managing director Justin Brown will receive 750,000 options, and
- Non-executive director John Ribbons will receive 150,000 options.
Coronavirus impact
In keeping with government guidelines, all E25 staff and contractors have been observing social distancing measures and working from home where possible to minimise contact.
The board will maintain safe working conditions while continuing with planned work programs where it is safe to do so.
World-class resource
E25's Butcherbird high-purity manganese deposit is a world-class manganese resource with current JORC resources in excess of 263 million tonnes of manganese ore.
The company has completed a robust scoping study with respect to developing the deposit to produce High-Purity Manganese Sulphate for lithium-ion battery cathodes as well as Electrolytic Manganese Metal for use in certain specialty steels.