The Element 25 Ltd (ASX: E25) share price is firmly in positive territory today. This comes after the company announced that it has finalised an agreement in preparation for its first manganese concentrate shipment.
During early afternoon trade, the mineral exploration and mining company's share price is fetching for $2.24, up 2.75%. In comparison, the All Ordinaries Index (ASX: XAO) is also travelling higher at 7,318 points, up 0.6%.
Details of the Element 25 update
Investors are pushing Element 25 shares higher after the company achieved an important milestone for its future operations.
According to its release, Element 25 advised it has executed a Multi User Access Agreement with the Pilbara Port Authority. Therefore, the company will be allowed to use the Port Hedland Utah Point facility to export in bulk its manganese product. A crucial ingredient for electric vehicle batteries, the mineral will come from Element 25's wholly-owned production facility at the Butcherbird Project.
Furthermore, the Utah Point facility is considered to be well equipped to handle multi-user bulk and loading operations.
Element 25 did not disclose the commercial terms of the agreement but stated that they are in line with normal operating terms. This also includes covering the company's capacity requirement of up to 390 kilotons per annum for its first stage of operations.
E25 managing director, Mr Justin Brown commented:
This is another important milestone on the way to our first sale of manganese concentrate, and we are excited to be closing in on our first shipment of Butcherbird's material to our offtake partners.
About the Butcherbird Manganese Project
The Butcherbird manganese project is an open-pit mining development located in the Pilbara region of Western Australia. The project is believed to contain the largest onshore manganese resource in the country.
A pre-feasibility study was completed in May 2020, and highlighted significant growth beyond the initial Stage 1 production volumes. Current JORC estimates put the project to produce 263 million tonnes of manganese ore.
Element 25 share price review
Over the past 12 months, Element 25 shares have accelerated to more than 500%, with year-to-date performance above 50%. The company's share price reached an all-time high of $2.90 in late March before investors took profit off the table.
Based on today's price, Element 25 presides a market capitalisation of roughly $339 million, with 148 million shares on issue.