[Ferro-Alloys.com]  Element 25 Signs Long-Term Binding Manganese Offtake Agreement with OM Materials

HIGHLIGHTS

•Binding take-or-pay offtake agreement executed with OM Materials (S) Pte Ltd, a subsidiary of OM Holdings Limited (ASX: OMH), for 100% of manganese concentrate (subject to carve-outs to support plans for future HPMSM feedstock requirements) produced at Element 25’s Butcherbird Mine in WA.

•Agreement comes as Element 25 advances its Butcherbird Expansion Project (BBX), targeting 1.1 million tonnes per annum (Mtpa) of manganese concentrate.

•The agreement provides offtake certainty for an initial five-year term, with the option to extend for a further five years.

•Market-linked pricing mechanism aligned to global manganese ore benchmarks.

•Structured shipping, take-or-pay and payment arrangements provides Element 25 with a clear sales pathway, including provisions for prepayment to support project cashflows.

•Includes specific carve-outs for Element 25 manganese to support plans to produce HPMSM.

•The agreement is subject to customary conditions precedent, including board approval and project financing.

•Offtake contract is the latest agreement executed by Element 25 for BBX, following its recent announcement of long-term Mining Services and Ore Haulage Services Agreements with ReGroup Australia Pty Ltd (ReGroup).

•Element 25 is targeting mechanical completion and commissioning of BBX in Q1 CY2027

Element 25 Limited (E25, Element 25 or Company) is pleased to announce its wholly-owned subsidiary, Butcherbird Operations Pty Ltd, has executed a binding long-term offtake agreement with OM Materials (S) Pte Ltd, (OMM) a subsidiary of OM Holdings Limited (ASX: OMH), for 100% of manganese concentrate produced at Element 25’s Butcherbird Mine in Western Australia’s (WA) Pilbara region, with carve-outs to support plans for future feedstock for battery-grade high purity manganese sulphate (HPMSM) production.

OM Holdings is a long-established manganese alloy producer and operator of manganese smelting facilities in Malaysia, providing a downstream industrial customer for Butcherbird production.

The agreement establishes a long-term sales channel for manganese concentrate from BBX, which is targeting expanded 1.1Mtpa of manganese concentrate production and represents a key milestone in advancing BBX towards development and financing.

The Offtake contract is the latest agreement executed by Element 25 for BBX, following its recent announcement of long-term Mining Services and Ore Haulage Services Agreements with ReGroup Australia Pty Ltd (ReGroup).

Key terms of the agreement include:

•OMM will purchase 100% of manganese concentrate production from Butcherbird, capped at ~1.1 Mtpa.

•Agreement includes take-or-pay obligations, supporting contracted volumes.

•OMM granted exclusive global marketing rights for conforming product, with limited carve outs for non-conforming material and Element 25’s own downstream processing requirements.

•Pricing is based on a transparent index-linked framework, referencing internationally recognised manganese ore benchmarks and includes quality-based adjustments reflecting product specifications, with freight normalisation to free on board (FOB) basis.

•Periodic pricing reviews to ensure alignment with prevailing market conditions.

•Includes staged payment arrangements linked to production, shipment and final reconciliation.

•Initial five-year term from first shipment, with option for extension of up to five additional years, subject to performance and review.

•Agreement is subject to customary conditions, including Board approval, project financing (including NAIF funding) becoming unconditional and regulatory approvals.

Element 25 Managing Director Justin Brown said: “This agreement secures a high-quality, long-term offtake partner for manganese concentrate produced at our expanded Butcherbird Operations, extending our existing relationship with OMH and its subsidiary, OMM.

OMH has established downstream smelting capability, providing a strong commercial foundation for the Butcherbird Project over the initial five years of operation, and potentially beyond that timeframe.

Securing a strong offtake partner also represents a major step forward in de-risking the development pathway for our Butcherbird expansion, giving lenders and investors the confidence needed to support project financing.

The structure of our agreement delivers revenue certainty while still preserving market exposure, ensuring we participate in upside conditions without compromising stability.

Importantly, the agreement maintains our strategic flexibility, allowing Element 25 to continue advancing our value-added downstream ambitions, including our HPMSM battery materials program.”

Product specification is aligned with standard manganese concentrate benchmarks (~31.5% Mn), and there are restrictions on resale into certain downstream markets to support the Company’s plans to produce HPMSM.

Element 25 is in the process of expanding Butcherbird, based on an updated January 2025 Feasibility Study (BBX FS) and an updated Ore Reserve of 101.4Mt at 10.4% Mn (10.54Mt contained manganese), supporting an 18+ year Life of Mine (LOM) at the planned throughput rate.

As remaining outstanding contracts for BBX close to finalisation, Element 25 currently forecasts mechanical completion and commissioning in Q1 CY2027.

• [Editor:tianyawei]