REG - Neometals Ltd - Barrambie Offtake Update

NeometalsAnnouncement

02/10/2023 08:45

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RNS Number : 3387O  Neometals Ltd  02 October 2023

This announcement contains inside information

 

2 October 2023

Neometals Ltd

("Neometals" or "the Company")

Barrambie Offtake Update

 

Highlights

 * Neometals and Jiuxing Titanium Materials Co ("Jiuxing") have been unable to
agree mutually acceptable offtake terms; and

 * Discussions with other parties in relation to offtake, equity investment and
development financing continue.

Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), announces that its wholly owned subsidiary Australian Titanium Pty Ltd has been unable to advance from offtake term sheet(1) to binding take or pay offtake agreement with Jiuxing.

Both parties have invested significant time and money evaluating the
feasibility of using Barrambie MGC in Jiuxing's downstream titanium processing
facilities.  Regrettably, the broader macroeconomic backdrop has required
Jiuxing to adjust its production plans and shelve further Barrambie related
activities. The Company is continuing its engagement with other third-party
titanium producers and mining services companies in relation to offtake,
equity investment and development financing.

The recent completion of the PFS Update(2), continues to highlight the
significant inherent value of the Project and the Company remains committed to
determine the best pathway to achieve Barrambie value for shareholders.

Neometals Managing Director Chris Reed said:

"Despite this disappointing outcome for both Jiuxing and Neometals, strong
alternative interest for offtake and investment into the Barrambie remains. We
continue to pursue multiple options with other parties about potential
development options for Barrambie."

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

 1  For further details see Neometals announcement titled "Offtake Term Sheet
with Jiuxing Titanium Executed" dated 20(th) April 2023

2 For further details see Neometals announcement titled "Barrambie Titanium
Project PFS and Ore Reserve Update" dated 15(th) May 2023

ENDS

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer                 +61 8 9322 1182
 Jeremy McManus, General Manager - Commercial & Investor Relations       +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

 Camarco PR                                                             + 44(0) 20 3 757 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 of lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery.
Reducing the reliance on traditional mine-based supply chains and creating
more resilient, circular supply chains 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 technology licencing activities as technology
partner to Mercedes-Benz. investment decision for Primobius' first commercial
50tpd plant and JV with Stelco in Canada expected end 2023;

 

·      Lithium Chemicals (70% technology) - Commercialising 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. Co-funding Pilot Plant trials in 2023 with
Demonstration Plant trials and evaluation studies in 2024 for potential
25,000tpa LiOH operation in Portugal under a 50:50 JV with 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. Investment decision with JV
partner, Critical Metals pending on planned 9,000tpa vanadium pentoxide
operation in Pori, Finland (NMT 72.5% equity). Feedstock sourced under 10-year
Slag supply agreement with SSAB and product offtake agreement with Glencore.
MOU with H2Green Steel for potential second, larger operation in Boden, Sweden

 

 

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

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