Elementos Secures $5M Boost from Metals X to Power Tin Ambitions

Strategic Partnership Strengthens Elementos’ Growth Path

Elementos Limited (ASX: ELT) has taken a significant step forward in its quest to become a leading tin producer by securing a $5 million strategic placement from Metals X Limited (ASX: MLX), Australia’s largest tin miner. This capital injection comes at a share price of $0.0848, closely mirroring Elementos’ recent market price, underscoring confidence from Metals X in Elementos’ asset portfolio and development trajectory.

The placement will see Metals X acquire approximately 58.96 million new shares, translating to a near 20% ownership stake post-transaction. This strategic investment not only provides Elementos with much-needed funding but also brings Metals X’s operational expertise into the fold, with two Metals X nominees set to join Elementos’ board. Such governance integration signals a deeper collaboration beyond mere capital support.

Funding Focused on Key Tin Projects

The proceeds are earmarked primarily for advancing Elementos’ flagship Oropesa Tin Project in Spain and the Cleveland Tin Project in Tasmania. The Oropesa project is positioned to become the European Union’s sole mine-to-metal tin supplier, a critical advantage amid rising global demand driven by electrification, green technologies, and lead-free solder requirements. Meanwhile, Cleveland is rapidly evolving into a significant critical minerals asset, complementing Elementos’ global footprint.

Elementos’ chairman, Andy Greig, highlighted the strategic nature of the partnership, emphasizing the milestone achievements that attracted Metals X’s interest. Metals X’s executive director Brett Smith echoed this sentiment, noting the opportunity to leverage their operational know-how to support Elementos’ development pipeline.

Shareholder Approval and Next Steps

While most shares will be issued under existing placement capacities, a small tranche of approximately 685,000 shares remains conditional on shareholder approval at an upcoming extraordinary general meeting. This introduces a minor element of uncertainty, though the overall transaction is expected to settle around 23 May 2025.

Looking ahead, the market will be watching closely how this strategic alliance influences Elementos’ project timelines and operational execution. The infusion of capital and expertise could accelerate progress toward final investment decisions and eventual production, positioning Elementos to capitalize on the tightening tin supply-demand dynamics.