OM Holdings Signs Binding Butcherbird Manganese Offtake

OM Holdings (ASX:OMH) advised that its wholly owned subsidiary, OM Materials (S) Pte. Ltd., has entered into a long-term binding take-or-pay offtake agreement with Element 25 Limited for manganese concentrate, and lodged Element 25's announcement setting out the key terms and conditions. Element 25 said the agreement was executed by its wholly owned subsidiary, Butcherbird Operations Pty Ltd. Under the agreement, OM Materials will purchase up to 100 per cent of the manganese concentrate produced at Element 25's Butcherbird mine in Western Australia's Pilbara region, capped at approximately 1.1 million tonnes per annum, with carve-outs to support Element 25's plans for future battery-grade high purity manganese sulphate feedstock. Product specification is aligned with standard manganese concentrate benchmarks of approximately 31.5 per cent manganese, and there are restrictions on resale into certain downstream markets.

The agreement runs for an initial five-year term from first shipment, with an option to extend for up to five additional years subject to performance and review. Pricing is based on an index-linked framework referencing internationally recognised manganese ore benchmarks, with quality-based adjustments and freight normalisation to a free on board basis, and periodic pricing reviews. It includes take-or-pay obligations, staged payment arrangements linked to production, shipment and final reconciliation, and provisions for prepayment. OM Materials has been granted exclusive global marketing rights for conforming product, with limited carve-outs for non-conforming material and Element 25's own downstream processing requirements in the initial years. The agreement is subject to customary conditions precedent, including board approval, project financing (including NAIF funding) becoming unconditional and regulatory approvals. Element 25 said the agreement supports its Butcherbird Expansion Project, which targets 1.1 million tonnes per annum of manganese concentrate on the basis of a production target first disclosed in its 22 January 2025 announcement, and that it currently forecasts mechanical completion and commissioning in Q1 CY2027.