REG - Neometals Ltd - A$4 Million Placement and Entitlement Offer

NeometalsAnnouncement

11/10/2024 07:00

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RNS Number : 8547H  Neometals Ltd  11 October 2024

NOT FOR RELEASE TO US WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES

 

 This announcement contains inside information for the purposes of Article 7 of
 the UK version of Regulation (EU) No 596/2014 which is part of UK law by
 virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
 the publication of this announcement via a Regulatory Information Service,
 this inside information is now considered to be in the public domain.

 

 

11 October 2024

Neometals Ltd

("Neometals" or "the Company")

Neometals Successfully Closes A$4 Million Placement and Announces Entitlement
Offer

Sustainable process technology developer, Neometals Ltd (ASX: NMT & AIM:
NMT) ("Neometals" or "the Company"), is pleased to announce that it has
received firm commitments from sophisticated, professional and institutional
investors for its placement of 44,444,445 new fully paid ordinary shares (New
Shares) at A$0.09 per New Share to raise approximately A$4 million (before
costs) (Placement).

Neometals Managing Director Chris Reed commented:

"We are pleased to announce the Entitlement Offer and conclusion of the
Placement which was supported by new and existing sophisticated investors and
institutions. The capital raising will reinforce commercialisation activities
by Neometals' battery recycling plant building joint venture, Primobius, as it
delivers its maiden plant for Mercedes-Benz. The successful validation of our
process and plant supply business model at scale is the precursor to offering
commercial plants to our growing pipeline of current and prospective customers
and technology licence holders. Neometals management appreciates the long-term
support and efforts of lead manager Euroz Hartleys as well as further
investment from existing shareholders.

Placement

A total of 44,444,445 New Shares will be issued under the Placement at a price
of A$0.09 per New Share (Offer Price) under NMT's ASX Listing Rule 7.1
placement capacity. The total number of New Shares to be issued under the
Placement represents approximately 6.4% per cent of the Company's existing
issued share capital (prior to the issue of the New Shares).

New Shares issued under the Placement will rank equally with existing NMT
ordinary shares from their date of issue.

Settlement of the Placement is scheduled to occur on Thursday, 17th October
2024. Allotment and normal trading of the New Shares under the Placement is
scheduled to occur on Friday, 18th October 2024. New Shares issued under the
Placement do not have rights to participate in the Entitlement Offer.

The Company's ordinary shares are expected to resume trading on the ASX from
market open today.

Application has been made for the New Shares to be admitted to trading on AIM
("Admission"), with Admission expected to occur on or around 8.00a.m. on
Thursday 17 October 2024. Following Admission of the New Shares, the Company
will have 734,342,539 Ordinary Shares in issue and there are no shares held in
treasury. This figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under the FCA's
Disclosure Guidance and Transparency Rules.

 

Entitlement Offer

Neometals is also undertaking a 1 for 12 pro rata non-underwritten,
non-renounceable entitlement offer to eligible shareholders in Australia and
New Zealand (Eligible Shareholders) to raise up to approximately A$5 million
(before costs) (Entitlement Offer).

All Neometals Directors intend to participate in the Entitlement Offer either
directly or through their associated related entity. The terms and conditions
and further details of how to participate in the Entitlement Offer will be set
out in an entitlement offer booklet (Offer Booklet) which is expected to be
made available to Eligible Shareholders on Monday, 21st October 2024.

Eligible Shareholders as at the Record Date of 5pm (Perth time) on Wednesday,
16th October 2024, with a registered address in Australia or New Zealand, will
be invited to participate in the Entitlement Offer at the Offer Price (being
the same price as the Placement). The Entitlement Offer is expected to open on
Monday, 21st October 2024 and close at 5pm (Perth time) on Wednesday, 30th
October 2024 unless extended. As the Entitlement Offer is non-renounceable,
entitlements will not be tradeable or otherwise transferable.

Eligible Shareholders are also offered the opportunity to apply for additional
new shares in excess of their entitlement, at the Offer Price (subject to
compliance with applicable laws and to the terms set out in the Offer
Booklet).(( 1 ))

The Offer Booklet will include a personalised entitlement and acceptance form.
Copies of the Offer Booklet will also be available on the ASX and the
Company's website.

Use of funds

Proceeds from the Placement and Entitlement Offer, together with existing cash
on hand, will be primarily used to fund the following:

·      LiB recycling development

·      lithium and vanadium technology research and development

·      Barrambie Gold and Titanium

·      staff, general and administrative costs

Timetable

The indicative timetable for the Placement and Entitlement Offer is set out
below:

 Event                                                                           Date
 Announcement of the Entitlement Offer (including the results of the Placement)  Friday, 11 October 2024
 Trading halt lifted and NMT shares recommence trading                           Friday, 11 October 2024
 Record date to determine entitlements for the Entitlement Offer                 5pm (Perth time) on Wednesday, 16 October 2024
 Settlement of Placement                                                         Thursday, 17 October 2024
 Issue of New Shares under the Placement                                         Friday, 18 October 2024
 Entitlement Offer Opening Date                                                  Monday, 21 October 2024

 Offer Booklet and Entitlement and Acceptance Form made available
 Entitlement Offer Closing Date                                                  5pm (Perth time) on Wednesday,

30 October 2024
 Announcement of results of Entitlement Offer & Issue of New Shares under        Wednesday, 6 November 2024
 the Entitlement Offer
 Trading of New Shares issued under the Entitlement Offer                        Thursday, 7 November 2024

 

All dates and times are indicative only and subject to change. NMT reserves
the right to amend any or all of these dates and times subject to the
Corporations Act, the Listing Rules and other applicable laws. In particular,
NMT reserves the right to extend the Closing Date for the Entitlement Offer,
to accept late Applications under the Entitlement Offer (either generally or
in particular cases) and to withdraw the Entitlement Offer without prior
notice. Any extension of the closing date of the Entitlement Offer will have a
consequential effect on the allotment date of New Shares under the Entitlement
Offer.

Euroz Hartleys Limited is acting as the lead manager, bookrunner and agent of
the Company (Lead Manager) in connection with the Placement and the
Entitlement Offer. Herbert Smith Freehills is acting as legal adviser.

Further details in relation to the Placement and Entitlement Offer are
contained in the equity raising presentation that was released to the ASX on
Friday 11th October 2024 (link
(https://www.neometals.com.au/en/investors/performance-and-news/) ) and the
Offer Booklet which is expected to be made available to Eligible Shareholders
on Monday, 21st October 2024.

Authorised for release by the Board of Neometals Ltd.

 

- ENDS -

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer       +61 8 9322 1182
 Chris Kelsall, CFO & Company Secretary                        +61 8 9322 1182

 Cavendish Capital Markets Ltd - NOMAD & Broker
 Neil McDonald                                                +44 (0)131 220 9771
 Peter Lynch                                                  +44 (0)131 220 9772
 Adam Rae                                                     +44 (0)131 220 9778

About Neometals

Neometals facilitates sustainable critical material supply chains and reduces
the environmental burden of traditional mining in the global transition to a
circular economy.

The Company is commercialising a portfolio of sustainable processing solutions
that recycle and recover critical materials from high-value waste streams.

·      Neometals' core focus is its patented, Lithium-ion Battery
("LiB") Recycling technology (50% NMT), being commercialised in a 50:50
incorporated JV (Primobius GmbH) with 150-year-old German plant builder, SMS
group GmbH. Primobius is supplying Mercedes-Benz a 2,500tpa recycling plant
and operates its own LiB Disposal Service in Germany. Primobius' first
21,000tpa commercial plant will be offered to Stelco under an existing
technology licence for North America.

Neometals is developing two advanced battery materials technologies for
commercialisation under low-risk, low-capex technology licensing business
models:

·      Lithium Chemicals (70% NMT) - Patented ELi™ 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. Pilot scale test work and Engineering Cost Study update
planned for completion in DecQ 2024; and

 

·      Vanadium Recovery (100% NMT) - Patent pending hydrometallurgical
process to produce high-purity vanadium pentoxide from steelmaking by-product
("Slag") at lowest-quartile operating cost and carbon footprint.

 

For further information, visit: www.neometals.com.au
(https://www.neometals.com.au/) .

 1  Additional New Shares will only be available where there is a shortfall
between applications received from Eligible Shareholders and the number of New
Shares proposed to be issued under the Entitlement Offer. NMT retains the
flexibility to scale back applications for additional New Shares at its
discretion.

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