REG - Neometals Ltd - Quarterly Activities Report

NeometalsAnnouncement

25/01/2024 07:15

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RNS Number : 8979A  Neometals Ltd  25 January 2024

 

25 January 2024

 

Neometals Ltd

("Neometals" or "the Company")

 

Quarterly Activities Report

For the quarter ended 31 December 2023

 

Highlights

 

Corporate

·    Capital raising completed for ~A$12.1 million (share placement for
A$9.0 million together with entitlement issue subscriptions for A$3.1
million); and

·    Cash balance of A$19.5 million, investments of A$24 million and no
debt.

 

 

Core Battery Materials Business Units

Lithium-ion Battery ("LiB") Recycling (50% NMT via Primobius GmbH, an
incorporated JV with SMS group GmbH)

·    Advanced construction and commenced installation of shredding "Spoke"
plant for Mercedes-Benz, purchase order for refinery "Hub" awarded post end of
quarter;

·    Successful operation of the 2,500 tpa integrated Pilot plant for
Mercedes-Benz will precede offer of integrated 20,000tpa plant for Stelco
planned in JunQ 2025 under technology licensing agreement; and

·    Outstanding lithium and nickel quality test work results from
demonstration trial, and life-cycle carbon assessment indicated potential for
~85% lower global warming footprint than mined battery materials.

 

Lithium Chemicals (Co-funding pilot plant with Bondalti Chemicals SA group via
Reed Advanced Materials Pty Ltd ("RAM") (70% NMT, 30% Mineral Resources Ltd)

·    Completion of purification stage of pilot test work program at SGS in
Canada. Purified brine delivered to electrolysis and product crystallisation
pilot plant laboratories for testing in MarQ 2024; and

·    Preparations for demonstration plant and engineering studies continue
and ongoing advanced discussions between RAM and Lifthium Energy SA (sister
company of Bondalti) for a new cooperation framework for the commercialisation
of RAM's ELi™ process in Portugal.

 

Vanadium Recovery (Technology 100% NMT via Avanti Materials Ltd)

·    Technical support provided to Recycling Industries Scandinavia AB
("RISAB") (72.5% NMT) to commercialise the technology through the development
of the Vanadium Recovery Project ("VRP1") in Finland; and

·    Advanced testing activities and commercial discussions with potential
feedstock providers under technology licensing business model.

Upstream - Mineral Extraction

Barrambie Titanium and Vanadium ("Barrambie") (100% NMT)

·    Tenement maintenance activities with focus on commercial discussions
in relation to product offtake and equity investment.

 

Spargos Lithium Project (100% NMT)

·    Activities associated with reviewing and updating historical data
sets, field verification, re-sampling, and assaying of logged pegmatites in
historical drilling core - final assay results pending.

Company Overview

Neometals is focussed on 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 creates 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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;

·    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
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a JV with a related
entity of 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.

 

 

Figure 1 - Location map of Neometals' Projects together with partner
developments.

Core Battery Materials Business Units
   Lithium-ion Battery Recycling

   (Intellectual Property via ACN 630 589 507 Pty Ltd- NMT 50%, SMS
   50%)
   Commercialising via Primobius GmbH, NMT 50% SMS group GmbH 50%

Primobius GmbH ("Primobius") is the 50:50 incorporated joint venture
established in 2020 to co-fund the commercialisation of the lithium-ion
battery recycling technology ("LiB Recycling Technology") originally developed
by Neometals.

The LiB Recycling Technology recovers materials contained in LiB production
scrap and end-of-life cells that might otherwise be disposed of in land fill.
Current LiB recycling processes predominantly rely on high carbon emission
pyrometallurgy processes. Primobius' two stage process recovers nickel,
cobalt, lithium and manganese battery materials (and physically recovers
metals and plastics) into saleable products that can be reused in the LiB
supply chain. The LiB Recycling Technology prioritises maximum safety,
environmental sustainability, and product recoveries, to support the circular
economy and decarbonisation.

 

Figure 2 - High level flowsheet showing the movement of materials from
Shredding and Beneficiation

('Spoke') through to refining ('Hub') stages for the LiB Recycling Technology.

Intellectual Property Status

During the quarter the LiB Recycling Technology IP holding company, ACN 630
589 507 Pty Ltd ("ACN630"), was granted two more national phase patents (in
Singapore and Eurasia respectively). Three patents have now been granted with
fourteen other national phase patents at various stages of prosecution
globally.

Commercialisation Status

Primobius' current business model contemplates the following revenue sources:

1.  Disposal fees (for LiBs supplied by multiple waste aggregators delivering
predominantly whole modules) and sale of recovered products (metallic scrap,
chemical intermediates and chemicals purchased by various recyclers and
smelting customers) from its Disposal Operation in Hilchenbach, Germany;

 

2.  Mechanical equipment and plant supply; and

3.  Royalties from licensing proprietary, patented recycling process.

Hilchenbach Disposal Operation

The Spoke section of the demonstration plant in Hilchenbach Germany
("Hilchenbach Spoke") is providing commercial LiB disposal services and the
hydrometallurgical refinery 'Hub' operates as a demonstration plant for
discrete customer trials, research and development.

The Hilchenbach Spoke produces intermediate mixed nickel/cobalt product
("Black Mass"). The typical LiB contains approximately 48% Black Mass which
Primobius is recovering at high levels and selling to a number of global
offtakers on a spot basis with pricing set according to nickel and cobalt
content.

Mechanical Equipment and Plant Supply

Primobius' key near-term commercial agreements are summarised below:

·    A Cooperation Agreement with Mercedes-Benz's ("Mercedes") ("Mercedes
Cooperation") for the engineering, equipment supply and installation for a
2,500tpa fully integrated, closed-loop recycling plant ("Mercedes Pilot
Plant"), 5 year research, collaboration and development of an industrial-scale
solution for Mercedes 1  (#_ftn1) ; and

·    Spoke and Hub equipment and plant supply agreements relating to the
Mercedes Pilot Plant.

Technology Licensing

·    Technology licensing and joint venture option agreements with a
subsidiary of Stelco Inc. ("Stelco") ("Stelco Agreements") which plans to
secure large volumes of end-of-life vehicles in North America for scrap steel
and recycle LiBs, with offer of maiden 21,000tpa integrated plant ("Stelco
Spoke" followed by "Stelco Hub") expected before 30 June 2025  2  (#_ftn2) .

·    Three exclusive licences have been issued for Scandinavia, the
Balkans and Italy to third-party licensees and one non-exclusive licence to
the UK. Neometals is the largest individual shareholder in the licensees and
ACN630 is entitled to receive a 10% gross revenue royalty from the technology
licences.

Activity Summary

During the quarter, Primobius made significant technical and commercial
progress highlighting its potential to produce battery materials with
exceptionally low CO(2) footprint. It also received its second plant package
purchase order from Mercedes on 10 January 2024. The offer and award of
mechanical equipment package plant supply agreements is underpinning a growing
order book consistent with the Company's preferred plant supply and technology
licensing/royalty business model. Primobius remains busy with evaluation,
engineering and design activities associated with the above.

Significant activities comprised:

Technical

·    Results of trials on a new lithium recovery option for Primobius Hub
plant packages confirmed lithium (in precipitated lithium fluoride) recoveries
exceeding 93% with purity of 95%. This process improvement option can replace
Primobius' current lithium solvent-extraction circuit which produces lithium
sulphate ("LiSO(4)") and is expected to reduce both operating and capital
costs. Lithium Fluoride has historically traded at a significant premium to
lithium carbonate;

·    LiB recycling demonstration trial generated battery-grade nickel
sulphate exceeding Chinese cathode producer specifications from recycling EV
batteries; and

·    Positive results were announced from an independent ISO-compliant
cradle-to-gate life cycle assessment ("LCA") completed by Minviro Ltd using
detailed engineering data from operations and demonstration trials:

o The LCA focused on Primobius' production of key battery materials (including
lithium fluoride, nickel sulphate hexahydrate and cobalt sulphate
heptahydrate) and confirmed its integrated hydrometallurgical refining process
to have a significantly lower carbon footprint than incumbent production
pathways in terms of global warming potential ("GWP"). Total GWP was confirmed
to be approximately 85% lower than comparisons with predominant EV supply
chains that start with primary mined nickel, cobalt and lithium sources.

 

 

Figure 3 - Comparison of GWP impact for producing key materials in Primobius'
hydrometallurgical product 'basket'  versus those same refined chemicals that
originated from primary mined extraction. Refining data for chemicals  was
derived using Chinese (cobalt and lithium) and Indonesian (nickel) operating
benchmarks which represent the largest manufacturing jurisdictions for the
respective primary products.

 

Commercial

•    Post the quarter end, Primobius was awarded a purchase order (value
~ €18.8M (~ A$30.8M)) from Mercedes for the supply of a hydrometallurgical
refining Hub for installation at its Kuppenheim Pilot Plant operation in
Germany. PO covers fabrication, installation and commissioning of the Hub
which will refine intermediate products from the 2,500tpa shredding 'Spoke'
currently being fabricated and installed;

•    Primobius amended the technology licence and option agreements with
1340455 B.C. LTD, Stelco's lithium-ion battery recycling special purpose
vehicle ("Stelco SPV"):

o The changes reflect Stelco's preferred business case to start up as a
fully-integrated operation (as opposed to staggered Spoke operations followed
by Hub to make integrated facility) to provide the carmakers, who supply the
end-of-life EVs, with a secure supply of key battery cathode chemicals. The
option agreement amendment extends the option expiry date for Primobius to
buy-in to Stelco SPV until 30 June 2025. The technology licence amendment
changes the product offering from a shredding spoke to a hydrometallurgical
refinery hub and the product readiness date to 30 June 2025. Primobius is
working to achieve product readiness for its commercial spoke plants by April
2024. Primobius plans to offer a fully-integrated plant supply contract to the
Stelco SPV (and other customers) in the June Q 2025 following completion of a
detailed engineering study and final factory acceptance testing of the
fully-integrated Mercedes-Benz 2,500tpa pilot plant; and

•    Ongoing business development activities to build a global pipeline
of potential future recycling plants.

 

 

Figure 4 - Render of integrated Mercedes LiB Recycling Pilot in Kuppenheim
Germany.

Figure 5 - Real-time photo of construction progress.

 

 

Corporate

•    Continued recruitment activities to expand the Primobius technical,
operational, commercial and management teams in line with corporate milestones
associated with offering mechanical plant and equipment package supply
contracts as demand grows.

 

 

   Lithium Chemicals
   (Intellectual Property via Reed Advanced Materials Pty Ltd ("RAM") - NMT 70%,
   Mineral Resources Ltd 30%)

   RAM co-funding pilot scale trials with Bondalti Chemicals SA (and related
   entity)

Neometals, through RAM, is commercialising its proprietary process (ELi™
Processing Technology ("ELi™")) to produce lithium hydroxide from lithium
chloride solutions using electrolysis. Neometals has used ELi™ to convert
lithium chloride solutions produced from both natural spodumene and brine
feedstocks at semi-pilot scale. ELi™ has the flexibility to produce lithium
hydroxide and lithium carbonate and at a significantly lower operating cost
than for conventional commercial production processes. ELi's key economic
advantage lies in the potential to replace costly, imported bulk reagents for
traditional carbonation and causticising processing steps with electricity and
low-cost internally generated reagents. RAM holds 19 granted patents in the
hard rock and brine producing countries and has a further 12 pending patent
applications.

Evaluation studies in 2016 and 2023 indicated the potential for ELi™ to
significantly reduce the operating cost (~50%) and carbon footprint associated
with production of lithium hydroxide from lithium brine sources.

Figure 6 - Schematic showing a comparison of the conventional flowsheet for

the production of lithium hydroxide from brines with the patented Eli™
process.

 

Intellectual Property Status

During the quarter RAM was granted a national phase patent in Argentina and
advised of the intention to grant one patent in the USA. RAM holds 18 granted
patents and 14 patents pending globally at various stages of prosecution
across three patent families covering hard rock and brine feedstock
flowsheets.

Commercialisation Status

Estarreja Lithium Refinery Project

In the December quarter 2021, RAM entered into a Co-operation Agreement ("ELi
Co-operation") with Portugal's largest chlor-alkali producer, Bondalti
Chemical SA. Bondalti is part of the Jose De Mello Group, one of Portugal's
largest conglomerates, family controlled and founded in 1898. Bondalti and RAM
have co-funded evaluation activities to assess the feasibility for
construction and operation of a commercial-scale lithium refinery ("Estarreja
Lithium Refinery" or "ELR"") adjacent to Bondalti's chlor-alkali operations in
Estarreja, Portugal.

With the original Pilot Trial activities nearing conclusion, and Bondalti's
parent incorporating a dedicated lithium subsidiary, Lifthium Energy SA
("Lifthium"), the Parties allowed the current ELi™ Cooperation to lapse on
the 30(th) September 2023.  RAM and Bondalti are continuing to co-fund the
agreed Pilot Trials in parallel with with advanced discussions for a new
cooperation agreement which is intended to address the completion of
evaluation activities, construction of a demonstration plant and Front-End
Engineering and Design Study ("ELi™ FEED Study") as well as key commercial
terms for licensing and operation.

Activity Summary

The ELR opportunity was progressed during the quarter with strong focus on
Pilot Trial activities and sourcing feedstocks for future demonstration and
longer-term commercial operations. A report based on trial results to provide
an updated to the Class 3 engineering and cost study ("Cl.3 ECS") will be
prepared following Pilot Trials.

Technical

·    Completed Pilot Trials comprising 3 stages being 'purification',
'electrolysis' and 'crystallisation'. The purification test-work at SGS in
Canada (processing concentrated and purified salar brine (6% Li basis)) was
completed during the quarter and preparations are underway for the follow-on
electrolysis stage;

·    The purification testwork, conducted on a salar brine feed source,
confirmed earlier bench-scale testing by removing >97% of brine feed source
impurities. The result is the production of a purified brine solution that is
suitable feed for the subsequent Pilot Trial electrolysis stage; and

Commercial

·      Commercial dialogues were progressed with aspiring and existing
producers of lithium brine concentrates to develop terms of supply to the ELR.
This included ongoing discussions with the commercial brine source feed
suppliers to the planned Demonstration Plant;

·      Commercial discussions progressed with potential lithium
hydroxide offtake partners for the ELR; and

·      Commercial discussions with potential ELi licensees in areas
outside Portugal and Spain.

Corporate

·      Advanced negotiations for a new Cooperation Agreement with
Lifthium Energy SA to replace the expired RAM-Bondalti Cooperation Agreement
and to reflect the current status of activities and the parties' commercial
intentions.

 

 

   Vanadium Recovery
   (Intellectual Property via Avanti Materials Ltd - NMT 100%)

   Commercialising via Recycling Industries Scandinavia AB ("RISAB") - 72.5% NMT

Neometals is commercialising its sustainable, proprietary vanadium recovery
process ("VRP Technology") to produce vanadium products for battery and
aerospace alloying applications from stockpiles of vanadium-bearing steel
making by-product.  The unique selling points of the technology are:

•    A processing flowsheet utilising conventional equipment at
atmospheric pressure, mild-temperatures, and non-exotic materials of
construction (refer to figure 7);

•    Potential lowest-quartile operating costs 3  (#_ftn3) from
processing steelmaking slags without upstream mining costs/risk/carbon
footprint (refer to figure 8); and

•    Likely very low or net zero greenhouse gas footprint given the
absence of mining and a processing route requiring the mineral sequestration
of CO(2) into a potentially saleable carbonate by-product which sequesters
CO(2) (refer to figure 9).

Figure 7 - High level flowsheet of Neometals VRP Technology.

 

Figure 8 - Vanadium Cost Curve.

Figure 9 - Carbon Footprint for VRP1 at Pori, Finland highlighting benefit of
sequestering CO2 in by-product.

 

Intellectual Property Status

During the quarter the Vanadium Recovery IP holding company, Avanti Materials
Ltd, had a request for national phase examinations of its foundation patent
from two countries and has separately lodged an additional national phase
patent for the recovery of Vanadium from leach residues in 10 countries.

Commercialisation Status

Vanadium Recovery Project 1 - Finland

Neometals and unlisted Scandinavian-focused explorer, Critical Metals Ltd
("Critical"), are jointly evaluating the feasibility of recovering high-purity
vanadium pentoxide ("V(2)O(5)") from high-grade vanadium-bearing steel
by-product ("Slag") in Scandinavia. Neometals has funded and managed
evaluation activities earning a 72.5% interest in an incorporated JV RISAB
with Critical.

In March 2023, Neometals announced results of a feasibility study ("VRP1 FS")
based on the AACE® Class 3 engineering cost study completed by Nordic
engineering group Sweco Industry OY. The VRP1 FS confirmed the potential for
lowest-quartile operating costs in a high-purity vanadium chemical operation
with a low-to-negative carbon footprint(4).

A take-or-pay offtake agreement has been struck with Glencore International AG
and the VRP1 is at the financing stage ahead of a decision to construct and
produce high-purity vanadium pentoxide from high-grade vanadium-bearing steel
making by-product ("Slag") under a feedstock supply agreement with SSAB EMEA
AB and SSAB Europe Oy (collectively "SSAB").

During the quarter Neometals provided notice to its partner in the VRP1
project confirming it does not wish to proceed with providing equity for the
construction of a slag processing facility in Finland.

 

Neometals has requested that RISAB consider alternative methods of funding,
including outright sale of the VRP1 project holding company. Neometals has
reverted to a technology licensing business model to commercialise its
proprietary VRP Technology. Neometals is engaging directly with potential
technology licensing partners as well as assisting RISAB in the process of
seeking funding for the project.

While RISAB continues to evaluate funding alternatives for the project the
European Investment Bank has approved provision of debt financing for the
project and Business Finland has approved the provision of a 15 million Euro
grant. Both are conditional on equity financing stream and other condition
precedents applicable to transactions of this type.

Figure 10 - Aerial schematic showing location for the proposed VRP1 processing
plant at Tahkoluoto port, Pori, Finland.

Upstream - Mineral Extraction
   Barrambie Titanium/Vanadium Project
   (Neometals 100%)

The Barrambie Vanadium and Titanium Project in Western Australia ("Barrambie")
is one of the largest vanadiferous-titanomagnetite ("VTM") Mineral Resources
globally (280.1Mt at 9.18% TiO(2) and 0.44% V(2)O(5)), containing the world's
second highest-grade hard rock titanium Mineral Resource (53.6Mt at 21.17%
TiO(2) and 0.63% V(2)O(5)) and high-grade vanadium resource (64.9Mt at 0.82%
V(2)O(5) and 16.9% TiO(2)) subsets (referred to as the Eastern and Central
Bands respectively) based on the latest Neometals 2018 Mineral Resource
Estimate 4  (#_ftn4) .

Barrambie is located approximately 80km north-west of Sandstone in Western
Australia ("WA") and the Mineral Resource is secured under a granted mining
lease. Neometals secured environmental approval in 2012 to mine and construct
a 3.2 Mtpa processing plant (Ministerial Statement 911), extended the
timeframe for implementation in 2019 (Ministerial Statement 1119) and is
currently in the process of securing a further extension of the timeframe for
project implementation. The project also has a granted mining proposal to
extract approximately 1.2Mtpa of mineralisation.

The current stage of development sees Neometals deeply engaged with
third-party titanium producers and mining services companies in relation to
offtake, equity investment and contract mine-to-port solutions.

Activity Summary

During the quarter the following activities were undertaken:

Technical

·    Metallurgical variability assessments completed in relation to
comminution and grind size determination completed.  Bulk metallurgical
variability assessments temporarily paused;

·    Regional exploration completed across Barrambie tenure to maintain
tenements in good standing;

·    Completion of seismic surveys, rehabilitation of drill lines, soil
analysis and rock chip sampling, and a geological database risk assessment;

·    Flora and vegetation studies continued during the quarter.  Field
programs to assess the potential of saline water prospects continued with next
steps dependant on cultural heritage surveys. Baseline monitoring including
dust, weather and water table depth continues; and

·    3 day on-country meeting held with Yugunga-Nya community and elders
to discuss the project and request cultural heritage surveys.

Corporate

In parallel with its evaluation and commercial activities, Neometals continues
to assess the optimal strategy to return Barrambie value to shareholders. This
includes ongoing engagement with third-party titanium producers and mining
services companies in relation to offtake, equity investment and contract
mine-to-port solution.

 

 

   Spargos Lithium Project
   (Neometals 100%)

The Spargos Project ("Spargos"), located 50 kilometres southwest of Coolgardie
in WA, comprises a legacy mineral tenement that was originally acquired for
nickel prospectivity. Spargos is located in an area of regional interest.
Specifically, the Mt Ida fault in the Yilgarn region of WA is attracting
attention for its rare metal pegmatites. The fault line hosts lithium projects
such as Delta Lithium's ("Delta") Mt Ida Lithium project and Liontown
Resources ("Liontown") Kathleen Valley. Liontown and Delta's projects share a
similar geological setting to Spargos with pegmatites that have intruded their
greenstone belts in close proximity to the Mt Ida fault. Both are flanked by
large granite fluid sources and have been intruded by late-stage Proterozioic
dykes.

 

 

 

Figure 11 - Location of the Spargos Project Relative to Major Western
Australia Lithium Mines or Developments

in the Goldfields Area (Publicly Available Lithium Resource Data Sourced from
Department of Mines,

Industry Regulation and Safety 1 May 2023).

Activity Summary

During the quarter the following activities were undertaken:

Technical

·    Pegmatites were identified within the Spargos greenstone belt in
historical mapping from the 1970's.

·    Historic diamond core and RC holes recorded the presence of multiple
pegmatites down hole in the existing database 5  (#_ftn5) .

·    Re-sampling of the priority holes that NMT retains focused on all
intrusions intersected with pegmatitic texture or of felsic origin, in total
617 samples were taken and dispatched to Intertek Genalysis laboratory during
the month of December. Assays results are pending.

·    A Spargos field visit was completed during the month of November.

Key observations

·    Observations of the drill core suggests the historic "pegmatite"
interpretations logged encompassed all felsic intrusive material including
pegmatitic and granitic textures as well as bucky quartz veins.

·    Outcrop was restricted to sediment/BIF horizons, mafic and ultramafic
lithologies. No outcropping pegmatites were found.

·    The orientation of interpreted pegmatite could only be corroborated
in one location (QVRK094) but observations support the interpreted narrow,
short range geometry of felsic intrusives;

·    Observations support the location of the southeastern
granite-greenstone contact position.

Results to date

·    Final diamond core assays results are yet to be received due to
delays at the laboratory due to staffing shortages during the Christmas period
and Covid 19 disruptions.

Tenement Admin

·    During the quarter a Heritage Protection Agreement was executed by
Ecometals with the Marlinyu Ghoorlie Claimant Group.

·    The 2022-2023 Annual Technical Report was submitted to DMIRS.

Next Steps

·    The Company's datasets are being updated with historic data not
currently in the database, sourced from historical reports.

·    Consultation with lithium experts including key geochemical and
geophysical experts being contracted to assist in future lithium exploration
including review of existing geophysical and geochemical data sets.

·    Completion of Heritage surveys for exploration drilling

·    Completion of Ground gravity survey targeting >10m wide pegmatite
intrusions.

·    Field site prep for exploration drilling planned post heritage
surveys.

·    Further field mapping in areas of poor access for outcropping
pegmatites.

Neometals core focus remains the commercialisation of its downstream battery
materials technologies however we will further investigate what could be a
significant value opportunity for shareholders that could also provide
Neometals' with a presence across the entire Li-ion supply chain.

Corporate

FINANCIAL

Redivium Ltd (Formerly Hannans Limited) (ASX: RIL) (Redivium) (Battery
Recycling)

As at 31 December 2023 Neometals held 879,812,014 ordinary fully paid shares
(~26% of the issued capital) in Redivium on an undiluted basis. Redivium holds
exclusive technology licences to Neometals' original LiB Recycling Technology
in Italy and the Balkans, a non-exclusive licence in the United Kingdom and it
is earning a 50% interest in an exclusive licence for Scandinavia held by
Critical Metals Limited.

Critical Metals Limited (Unlisted, Scandinavian Lithium/Cobalt/Base Metals)

Neometals holds ~18.4% of unlisted public company Critical Metals Ltd, a
company which holds an exclusive licence to Neometals' original LiB Recycling
Technology in Scandinavia and 27.5% interest in RISAB.

Finances (unaudited)

Cash and term deposits on hand as of 31 December 2023 totalled $19.5 million,
including $0.2 million in restricted use term deposits supporting contractual
obligations. The Company has net receivables of $2.0 million and investments
totalling $24 million.

Related Party payments for the quarter outlined in the ASX Appendix 5B
released contemporaneously at section 6.1 total $279,375 and are made up of
Director fees and superannuation.

Issued Capital

The total number of shares on issue as at 31 December 2023 was 622,690,316.

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

 

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 Capital Markets Limited - 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

 

Compliance Statement

The information in this report that relates to Mineral Resource Estimates for
the Barrambie Vanadium/Titanium Project is extracted from the ASX Announcement
listed below, which is also available on the Company's website at
www.neometals.com.au (http://www.neometals.com.au) .

 17/04/2018  Barrambie - Updated Barrambie Mineral Resource Estimate

The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and that all material assumptions and technical parameters
underpinning the estimates in the market announcements continue to apply and
have not materially changed. The Company confirms that the form and context in
which the Competent Persons' findings are presented have not been materially
modified from the original market announcements.

 

Appendix

 

Appendix 1: Global Resource

Table 1: Barrambie Mineral Resource Estimate, April 2018*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix 2: Tenement Interests

As at 31 December 2023, the Company has an interest in the following projects
and tenements in Western Australia.

 Project Name          Licence Name  Beneficial Interest  Status
 Barrambie             M57/173-I     100%                 Live
 Barrambie             E57/769-I     100%                 Live
 Barrambie             E57/770-I     100%                 Live
 Barrambie             E57/1041-I    100%                 Live
 Barrambie             E57/1220      100%                 Pending
 Barrambie             E57/1244      100%                 Pending
 Barrambie             E57/1245      100%                 Pending
 Barrambie             E57/1379      100%                 Live
 Barrambie             E57/1401      100%                 Pending
 Barrambie             E20/1037      100%                 Pending
 Barrambie             L57/0030      100%                 Live
 Barrambie             L57/0064      100%                 Pending
 Barrambie             L57/0065      100%                 Pending
 Barrambie             L57/0066      100%                 Pending
 Barrambie             L20/0055      100%                 Live
 Barrambie             L20/0080      100%                 Live
 Barrambie             L20/0081      100%                 Live
 Queen Victoria Rocks  E15/1416-I    100%                 Live

 

 

Changes in interests in mining tenements Interests in mining tenements
acquired or increased

 Project Name  Licence Name  Acquired or increased
 Barrambie     E57/1379      Granted

 

Interests in mining tenements relinquished, reduced, or lapsed

 Project Name  Licence Name  Relinquished, reduced, or lapsed
 Barrambie     E77/2809      Withdrawal
 .

 

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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;

 

·      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
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a JV with related entity
to Bondalti, Portugal's largest chemical company; and

·      Vanadium Recovery (100% technology) - aiming to enable
sustainable production of 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
(http://www.neometals.com.au/)

 

 

 1  (for full details refer to Neometals ASX announcement headlined
"Cooperation Agreement with Mercedes Benz" released on 13(th) May 2022)

 2  (for full details refer to Neometals ASX announcement headlined "Primobius
Commercial Update" released on 22nd December 2023)

 3  (for full details refer to Neometals ASX announcement headlined "Vanadium
Recovery Project Delivers Strong Feasibility Results" released on 8(th) March
2023).

 4  (for full details refer to ASX announcement headlined "Barrambie Project -
Mineral Resource Update
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2995-01971759-6A879871?access_token=83ff96335c2d45a094df02a206a39ff4)
" released on 17 April 2018 and Table 1 (Appendix 1)

 5  for full details refer to ASX announcement headlined "Neometals
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2995-01971759-6A879871?access_token=83ff96335c2d45a094df02a206a39ff4)
Discovers Spodumene-bearing Pegmatite at Spargos Project" released on 13(th)
November 2023

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