REG - Neometals Ltd - Quarterly Activities Report

NeometalsAnnouncement

23/01/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250123:nRSW4358Ua&default-theme=true

RNS Number : 4358U  Neometals Ltd  23 January 2025

23 January 2025

Neometals Ltd

 

("Neometals" or "the Company")

 

Quarterly Activities Report

 

For the quarter ended 31 December 2024

 

 

Highlights

CORPORATE

·    Cash balance of A$10.7M; investments and net receivables of A$10.7M
and no debt; and

·    During the quarter, Neometals Ltd ('Neometals', 'NMT' or 'the
Company') raised A$7.1M via a placement (A$4M) and an entitlement issue
(A$3.1M) at A$0.09 per share.

 

DOWNSTREAM PROCESSING TECHNOLOGIES

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

·    Mercedes-Benz officially opened the integrated 2,500tpa plant
lithium-ion battery recycling facility, supplied by Primobius, at Kuppenheim,
Germany. The plant is being commissioned and aims to produce high-purity
battery materials for reuse in their electric vehicle supply chain; and

·    Primobius continues to progress its business development pipeline
ahead of 'product readiness' target for commercial-scale Spoke and Hub plants
in 1H and 2H 2025, respectively.

 

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

·    Final stage of the Pilot trial successfully produced high-purity
lithium hydroxide monohydrate for evaluation by the brine feedstock provider
and further market evaluation; and

·    The Pilot trial data and vendor test work reports support the key
power consumption and membrane life assumptions, and applicability of
equipment for commercial-scale operation.

 

Vanadium Recovery (87.1% NMT, via Recycling Industries Scandinavia AB
("RISAB"))

·    Equity and Debt process ongoing.

 

UPSTREAM MINERAL EXPLORATION

Barrambie Gold and Vanadium/ Titanium Projects ("Barrambie") (100% NMT)

·      Barrambie Greenstone Belt hosted high-grade gold production early
last century. No modern exploration since acquisition in 2003 and 90% of
historical drilling largely limited to <60m in depth;

·      Maiden Gold Exploration Target 1  (#_ftn1) ranging between 8Mt
and 10.5Mt at an average grade of 1.3g/t Au to 2.3g/t Au, for 335,000 oz Au to
775,000 oz Au indicative of potential for camp-scale brownfields discoveries;

·      Completed Aboriginal Heritage Survey and advanced preparations
for maiden gold exploration program, due to commence in March Q 2025; and

·      Advanced discussions in relation to the separate divestment of
the Barrambie titanium and vanadium Mineral Resources.

 

 

DOWNSTREAM PROCESSING TECHNOLOGIES

 

   Lithium-ion Battery Recycling

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

Background

Primobius GmbH ("Primobius") was established in 2020 to commercialise
Neometals' lithium-ion battery recycling technology under an exclusive licence
from ACN 630 589 507 Pty Ltd ("ACN 630"), the intellectual property holding
vehicle, both being co-owned with SMS group GmbH, a 150-year old German plant
builder with ~14,000 employees globally and fabrication facilities in Europe,
USA, India and China.

Primobius will earn a margin on plant supply agreements and pass through
royalties from the associated technology licenses to ACN 630. ACN 630 is the
ultimate beneficiary of five third party technology licences issued to date.
ACN 630 holds five (5) granted national phase patents with a further twelve
(12) pending.

Mercedes-Benz LiB Recycling Plant Officially Opens

In May 2022, Neometals announced that Primobius and Mercedes-Benz ("Mercedes")
had entered into a 5-year research collaboration aimed at jointly developing
tailored, industrial-scale LiB recycling solutions for Mercedes-Benz. The
industrial validation of Primobius patented recycling technology at Kuppenheim
plant will precede the global offering of commercial-scale ~20,000tpa
integrated battery recycling plants.

Figure 1 - Part of the Integrated LiB Plant installed by Primobius at
Kuppenheim

 

On 22 October 2024, Primobius announced the official opening of Europe's first
battery recycling plant which utilises an integrated
mechanical-hydrometallurgical process. The 2,500tpa plant in Kuppenheim,
Germany was designed, supplied and installed by Primobius under a Supply
Agreement with automotive company Mercedes-Benz.

Figure 2 - MB CEO Ola Kἂllenius, German Chancellor Olaf Scholz and State
Environment Minister Thekla Walker

The Plant has re-commenced commissioning activities and is scheduled for
acceptance testing of the shredding and beneficiation plant in the June Q 2025
and the Hub in the Dec Q 2025. Successfully acceptance testing of the Hub is
the stage gate for proceeding to offer commercial-scale integrated recycling
plants.

Hilchenbach LiB Disposal Operation

Primobius operates a LiB disposal service for customers in the German EV
battery supply chain for which it receives a gate fee. The Hilchenbach
shredding and beneficiation plant produces an intermediate mixed nickel/cobalt
product ("Black Mass") and a mixed copper/aluminium product ("Black Copper")
which are sold to offtakers. The plant is also used to showcase the shredding
and beneficiation plant to prospective customers and test new process
improvements and equipment.

Commercial

Four (4) exclusive licences have been issued for North America, Scandinavia,
the Balkans and Italy and one (1) non-exclusive licence to the UK. Primobius
has the right to acquire a 25-50% equity interest in the technology licensee
at any time up to 30 June 2025 2  (#_ftn2) . Primobius continues to advance a
number of non-binding MoUs for the potential supply of LiB recycling plants.

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

Background

RAM is commercialising its proprietary, patented ELi™ Process ("ELi™"),
which produces lithium hydroxide and carbonate from lithium chloride solutions
using electrolysis. ELi™ has potentially significantly lower operating cost
and carbon footprint compared to conventional production processes, replacing
costly, bulk chemical reagents with electricity and low-cost internally
generated reagents. RAM holds nineteen (19) granted national phase patents
with a further fourteen (14) pending.

 

ELi(TM) Process Pilot Trial

During November, Neometals announced results from the final evaporation and
crystallisation stage of the Eli(TM) Process Pilot Trial ("ELi Pilot"),
successfully producing high-purity lithium hydroxide monohydrate.

RAM has now completed a long-duration 1,000-hour electrolysis membrane
durability test utilising a lithium chloride solution produced in the
successful 2023 'purification' trial on brine sourced from South America 3 
(#_ftn3) . The Trial results support the 2023 Engineering Cost Study estimates
of two major variable operating costs (power consumption and membrane life)
and hydrodynamic testing confirmed the equipment can be applied to
commercial-scale operation.

The successful completion of the ELi Pilot and final test work reports allow
RAM to advance the partner selection process to fund the next stage of
commercialisation, the industrial validation through continuous demonstration
plant trials.

Table 1 - LHM Sample Analysis

 Element(( 4  (#_ftn4) ))  LiOH %    CO32-%   Na ppm  Ca ppm  K ppm  Fe ppm  SO4 ppm
 Target Spec               >56.5     <0.4     20      10      10     10      100
 Sample 1                  56.6      ND       1.8     6.0     5.6    8.2     2.4
 Sample 2                  56.9      ND       3.6     9.7     5.1    8.6     1.5

 

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

   Vanadium Recovery Project 1 via Recycling Industries Scandinavia AB ("RISAB")
   - 87.1% NMT, 11.8 % Critical Metals Ltd and 1.1% EIT RawMaterials GmbH (option
   to increase to 19.9%)

Background

Neometals has developed a process to produce vanadium products for battery and
aerospace alloying applications, from vanadium-bearing steel slag by-products.
A Pilot trial and Feasibility Study indicated the potential for
lowest-quartile operating costs(( 5  (#_ftn5) )) and carbon-footprint,
utilising conventional equipment at atmospheric pressure, mild temperatures,
and standard construction materials. Avanti Materials Ltd (100% NMT), the
intellectual property holding company, has seven (7) national phase patents
pending.

Vanadium Recovery Project 1 ("VRP1") - Finland

In September 2024 RISAB executed a project agreement with EIT RawMaterials
GmbH ("EIT RawMaterials") to support the development of the Finnish vanadium
recovery project ("VRP1"). EIT RawMaterials provided €0.5M (c. A$829k) in
grant funding and become a minority shareholder in RISAB (1.1%) at a pre-money
valuation of €50M (c. A$82.9M)(( 6  (#_ftn6) )) ("Pre-Money Valuation") and
has the option to subscribe for up to a further €10M in additional RISAB
equity, at the Pre-Money Valuation.

During the quarter RISAB progressed a project financing process for equity and
debt, with improved economics arising from an additional €15M conditional
investment grant provided by the EU backed Finnish State NextGeneration fund
and potential new 20% investment tax credit from the Finnish State.

Figure 3 - Schematic View of the proposed VRP1 Plant at Tahkoluoto Port, Pori,
Finland

UPSTREAM EXPLORATION PROJECTS

   Barrambie Titanium and Vanadium Project
   (Neometals 100%)

Background

Barrambie, located approximately 80km north-west of Sandstone in Western
Australia ("WA"), is one of the largest vanadiferous titanomagnetite ("VTM")
Mineral Resources globally (280.1 Mt at 9.18% TiO(2) and 0.44% V(2)O(5))(( 7 
(#_ftn7) )), 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)).

Activity Summary

During the quarter, discussions advanced in relation to the separate
divestment of the Barrambie titanium and vanadium Mineral Resources.

   Barrambie Gold Project
   (Neometals 100%)

Background

The Barrambie Greenstone Belt ("BGB") has historically reported a production
of ~27,000 ounces of gold in the early part of the last century, as recorded
by the Western Australian Mines Department. Neometals has not conducted any
gold exploration since acquiring the first tenement in 2003. A recent review
of the historical public data highlighted that 90% of previous drilling for
gold has largely been limited to less than 60m in depth, suggesting that the
BGB is one of the most underexplored greenstone belts in the West Australian
goldfields. Barrambie is proximal to a number of camp scale gold projects with
existing processing infrastructure.

 

In September 2024, Neometals announced that the identified Exploration Target
along the 40km strike of BGB within Neometals' tenure is between 8Mt at an
average grade of 1.3g/t Au and 10.5Mt at an average grade of 2.3g/t Au, for an
implied 335,000 ounces to 775,000 ounces gold(( 8  (#_ftn8) )).

Activity Summary

During the quarter an Aboriginal Heritage survey was completed in preparation
for NMT's inaugural gold drilling program. A Program of Work for the planned
drilling has received regulatory approval from the West Australian Department
of Energy, Mines, Industry Regulation and Safety and preparations are well
advanced to commence the program during the March Q 2025.

 

 

Figure 4 - Barrambie Gold Project tenure, simplified geology and historical
production centres

 

 

CORPORATE

Neometals completed a A$4 million placement and received $3.1 million from an
entitlement issue during the quarter. Shares were issued at $0.09 per share
for each transaction.

Financial

Finances (unaudited)

Cash and term deposits on hand as of 31 December 2024 totalled $10.7 million,
including $0.3 million in restricted use term deposits supporting contractual
obligations. The Company has investments totalling $9.2 million, with net
receivables of $1.5 million.

Related party payments for the quarter outlined in the ASX Appendix 5B
released contemporaneously at section 6.1 total $321,594, comprising Director
fees and superannuation.

Issued Capital

The total number of shares on issue as at 31 December 2024 was 769,425,084.

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

As at 31 December 2024, 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, Greece 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. During the December quarter,
Redivium announced to ASX that its shares would be voluntarily suspended from
trading and that it would assess the reinstatement of it shares to trading
following the completion of its pro-rata non-renounceable entitlement offer.

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

Neometals holds ~18% of unlisted public company, Critical Metals Ltd, a
company which holds an exclusive licence to Neometals' original LiB Recycling
Technology in Scandinavia.

 

 

 

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

 

 

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

 

 

 

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.

 

Competent Persons Statement - Exploration Target

The information in this Quarterly Activities Report that relates to
Exploration Targets is based on information compiled by Jeremy Peters. Mr
Peters a Director of Burnt Shirt Pty Ltd, a geological and mining consultancy,
and has sufficient experience relevant to Western Australian orogenic gold
mineralisation and to the reporting of Exploration Targets to qualify as a
Competent Person as defined in the December 2012 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Data compiled from historic WAMEX reports by the Neometals
Exploration Team has been reviewed by Mr Peters, who has consented to the
inclusion of the matters in this Quarterly Activities Report based on this
information in the form and context in which it appears.

 

 About Neometals Ltd                                                              Vanadium Recovery (100% NMT) - Patent pending hydrometallurgical process,

                                                                                aiming to produce high-purity vanadium pentoxide from steelmaking by-product
 The Company is commercialising a portfolio of sustainable processing solutions   (Slag) at lowest-quartile operating cost and carbon footprint. Planning to
 that recover critical materials from high-value waste streams. Plant supply      exploit under a technology licensing business model. Project financing process
 and/or technology licensing business models are preferred given lower risk and   for first commercial plant in progress (87.1% NMT).
 capital required.

                                                                                The Company's remaining upstream mineral asset has two separate styles of
 Neometals' core focus is its patented, Lithium-ion Battery ("LiB") Recycling     mineralisation and mineral resources:
 technology (50% NMT), being commercialised (via Primobius GmbH) with

 150-year-old German plant builder, SMS group GmbH. Primobius is supplying        Barrambie Titanium and Vanadium (100% NMT) -. The world's second highest grade
 Mercedes-Benz a 2,500tpa recycling plant for Mercedes-Benz, which is currently   hard-rock titanium and vanadium deposit is currently in a divestment process;
 being commissioned. This industrial validation will precede the offer of         and
 commercial ~20,000tpa integrated recycling plants to its business development

 pipeline.                                                                        Barrambie Gold (100% NMT) -. Historic high-grade gold producer early 1900s, no

                                                                                modern exploration. Maiden gold exploration target highlighted potential for
 Lithium Chemicals (70% NMT) - Patented ELi™ electrolysis process, co-owned       camp-scale brownfields gold discoveries. Maiden gold exploration programs
 30% by Mineral Resources Ltd, aiming to produce battery quality lithium          planned for March Q 2025. Barrambie is proximal to a number of camp-scale gold
 hydroxide from brine and/or hard-rock feedstocks at lowest quartile operating    projects with existing processing infrastructure.
 costs. Successfully completed Pilot scale test work and planning industrial
 validation with funding partners through continuous demonstration plant
 trials, targeting a technology licensing business model; and

 

 

APPENDIX

·                      Appendix 1: Tenement Interests

As at 31 December 2024, 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             E57/1401      100%                 Pending
 Barrambie             E57/1437      100%                 Pending
 Barrambie             L57/0030      100%                 Live
 Barrambie             L57/0066      100%                 Live
 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
 N/A           N/A           N/A

 

·                      Interests in mining tenements
relinquished, reduced, or lapsed

 Project Name  Licence Name  Relinquished, reduced, or lapsed
 N/A           N/A           N/A

 

 1  For full details refer to Neometals ASX announcement headlined "Barrambie
Gold Exploration Target" released on 23rd September 2024

 

 2  For full details refer to Neometals ASX announcement headline "Primobius
Commercial Update" released on 22nd December 2023

 3  For full details refer to Neometals ASX announcement dated 12th November
2024 and titled "Positive Results from EliTM Pilot Trial"

 4  LiOH and CO32  analysis reported by a South African laboratory and the
other elements reported by an Australian laboratory

 5  For full details refer to Neometals ASX announcement headlined "Vanadium
Recovery Project Delivers Strong Feasibility Results" released on 8th March
2023

 6  For full details refer to Neometals ASX announcement headlined "Finnish
Vanadium Project receives EU supported capital injection" released on 16
September 2024

 7  For full details refer to Neometals ASX announcement headlined "Updated
Barrambie Mineral Resource Estimate" released on 17th April 2018

 8  For full details refer to Neometals ASX announcement headlined "Barrambie
Gold Exploration Target" released on 23rd September 2024

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBJMFTMTATMLA