Neometals Ltd Vanadium Recovery Strategy Update (6236R)
30 Ottobre 2023 - 8:00AM
UK Regulatory
TIDMNMT
RNS Number : 6236R
Neometals Ltd
30 October 2023
This announcement contains inside information
30 October 2023
Neometals Ltd
("Neometals" or "the Company")
Vanadium Recovery Strategy Update
Innovative battery materials recycler, Neometals Ltd (ASX: NMT
& AIM: NMT) ("Neometals" or "the Company"), advises that it has
provided its partner in the Finnish vanadium recovery project
("VRP1"), Critical Metals Ltd ("Critical Metals"), with notice that
it does not wish to proceed with the construction of a vanadium
recovery facility. Despite the potential lowest-quartile operating
cost and low-carbon footprint, the state of the global financial
markets dictate that the Company preserves its cash balance and not
contribute further material funding to VRP1 evaluation activities
.
Neometals earned a 72.5% interest in VRP1 through its ownership
in Recycling Industries Scandinavia AB ("RISAB"), with Critical
Metals holding 27.5%. RISAB has evaluated the feasibility of
producing high-purity vanadium from steel slags under a conditional
take-or-pay feedstock agreement ("Feedstock Agreement"). The
Feedstock Agreement requires a substantial prepayment and financial
guarantees from RISAB's shareholders. The Neometals' board has
formed the opinion that it will not agree acceptable equity
financing terms within the required timeline for consideration of
the VRP 1 financial investment decision despite having navigated an
extensive technical due diligence process with its preferred equity
and debt providers.
Neometals has requested that RISAB consider alternative methods
of funding, including outright sale of the VRP1 project holding
company. However, Neometals intends to revert to a technology
licensing business model to commercialise its proprietary vanadium
recovery process ("VRP Technology").
Neometals retains 100% ownership of the VRP Technology via
wholly owned subsidiary Avanti Materials Ltd and will continue to
engage directly with potential partners, including steel makers
producing suitable steel slags, under a low-capex, low-risk
technology licensing business model to generate future royalty
income.
Neometals Managing Director Chris Reed said:
"Despite VRP 1 having compelling cost and carbon footprint
metrics, today's commodity and financial market conditions preclude
a positive investment decision at this time. We must realign our
commercialisation strategy and pursue a technology licensing model
going forward."
Authorised by the board of Neometals.
ENDS
For more information, please contact:
Neometals Ltd
Chris Reed, Managing Director & Chief Executive
Officer +61 8 9322 1182
Jeremy McManus, General Manager - IP & IR +61 8 9322 1182
Cavendish Securities plc - NOMAD & Joint
Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
RBC Capital Markets - Joint Broker +44 (0) 20 7653 4000
Paul Betts
Jamil Miah
+ 44(0) 20 3 757
Camarco PR 4980
Gordon Poole
Emily Hall
Lily Pettifar
About Neometals
Neometals has developed and is commercialising three
environmentally-friendly processing technologies that produce
critical and strategic battery materials at lowest quartile costs
with minimal carbon footprint.
Through strong industry partnerships, Neometals is demonstrating
the economic and environmental benefits of sustainably producing
lithium, nickel, cobalt and vanadium from lithium-ion battery
recycling and steel waste recovery. This reduces the reliance on
traditional mine-based supply chains and creating more resilient,
circular supply to support the energy transition.
The Company's three core business units are exploiting the
technologies under principal, joint venture and licensing business
models:
-- Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All
plants built by Primobius' co-owner (SMS group 50% equity), a
150-year-old German plant builder. Providing recycling service as
principal in Germany and commenced plant supply and licensing
activities as technology partner to Mercedes-Benz. Primobius
targeting first commercial 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;
-- Lithium Chemicals (70% technology) - Commercialising patented
ELi(TM) electrolysis process, co-owned 30% by Mineral Resources
Ltd, to produce battery quality lithium hydroxide from brine and/or
hard-rock feedstocks at lowest quartile operating costs. Co-funding
Pilot Plant trials in 2023 with planned Demonstration Plant trials
and evaluation studies in 2024 for potential 25,000tpa LiOH
operation in Portugal under a 50:50 JV with related entity to
Bondalti, Portugal's largest chemical company; and
-- Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking
by-product ("Slag") at lowest-quartile operating cost. Targeting
partnerships with steel makers and participants in the vanadium
chemical value chain under a low risk / low capex technology
licensing business model.
For further information visit www.neometals.com.au
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END
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