REG - Neometals Ltd - Vanadium Recovery Project Offtake with Glencore

NeometalsAnnouncement

12/07/2023 07:00

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RNS Number : 7719F  Neometals Ltd  12 July 2023

This announcement contains inside information

 

12 July 2023

 

Neometals Ltd

("Neometals" or "the Company")

 

Vanadium Recovery Project Offtake Executed with Glencore

Highlights

 

·      Agreement for the guaranteed offtake for 100% of vanadium
products produced by Vanadium Recovery Project ("VRP1") secured with leading
commodities producer and marketer, Glencore International AG ("Glencore");

·      Demonstrates the market demand for high-purity, carbon-neutral
vanadium pentoxide ("V(2)O(5)") produced in the European Union ("EU") from EU
raw materials; and

·      Glencore will provide technical expertise to the project given
its deep vanadium operating experience at the Rhovan Mine in South Africa.

 

Emerging sustainable battery materials producer, Neometals Ltd (ASX: NMT &
AIM: NMT) ("Neometals" or "the Company"), is pleased to announce the execution
of a binding offtake agreement between Novana Oy ("Novana") and Glencore for
VRP1 ("Offtake Agreement"). Novana is a 100% owned subsidiary of VRP1's joint
venture company, Recycling Industries Scandinavia AB ("RISAB"). Neometals has
a 72.5% ownership interest in RISAB, with Critical Metals Ltd ("Critical
Metals") holding the remaining 27.5% ownership interest.

Under the terms of the Offtake Agreement, Novana will exclusively sell and
deliver to Glencore, and Glencore will purchase and take delivery of all
saleable vanadium bearing products (including but not limited to V(2)O(5) and
ferrovanadium) produced by Novana for an initial period of 5 years from the
commencement date, which automatically extends in 2-year increments unless
Novana or Glencore elect not to renew the Offtake Agreement.

The delivery period shall commence on 1 January 2026 or an earlier date
notified to Glencore by Novana with 12 months' notice. The price payable for
the vanadium bearing products produced and delivered is tied to a prevailing
market-publication. Through a joint steering committee Glencore will also
provide technical expertise during initial phases of VRP1 development
including providing advice and insights.

Neometals Managing Director Chris Reed said:

"Securing take or pay offtake for 100% of VRP1 vanadium products represents a
significant milestone as we progress towards a FID this quarter. Removing
volume risk on offtake is seen as a key requirement for securing project
finance and we have mitigated this risk with the take or pay nature of our
Offtake Agreement with a Tier 1 counterparty in Glencore.

"The Offtake Agreement further emphasises the anticipated future need for high
purity material in the market. This is supported by significant expected
demand from the vanadium redox flow battery sector and other potential high
purity applications."

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

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

 Cenkos Securities plc - NOMAD & Joint Broker
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 Peter Lynch                                                            +44 (0)131 220 9772
 Adam Rae                                                               +44 (0)131 220 9778

 RBC Capital Markets - Joint Broker                                     +44 (0) 20 7653 4000
 Jonathan Hardy
 Jamil Miah

 Camarco PR                                                             + 44(0) 20 3 757 4980
 Gordon Poole
 Emily Hall
 Lily Pettifar

 

About Neometals

Neometals is an emerging, sustainable battery materials producer. The Company
is commercialising three environmentally-friendly processing technologies that
will primarily produce lithium, nickel, cobalt and vanadium at lowest quartile
costs with minimal carbon footprint.

 

Neometals' and its partners have been recognised internationally for
sustainable approaches that combine industry leading costs with circular
economic principles, reducing the reliance on traditional upstream
mining-based supply chains. The Company's three core business units are
commercialising these proprietary technologies in incorporated joint ventures:

 

·      Lithium-ion Battery ("LIB") Recycling (50% technology) -
providing recycling as a service, plant supply under JV, or technology
licensing business models via Primobius GmbH (NMT 50% equity). All plants
built by Primobius' co-owner (SMS group 50% equity), a 150-year old German
plant builder with 14,000 employees. Primobius is recycling technology partner
and plant supplier to Mercedes-Benz. Commercial 10tpd shredding 'Spoke'
facility operational in Germany and investment decision for Primobius' first
commercial 50tpd plant with Stelco in Canada expected Q4 (NMT 25% equity).

·      Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking by-product
("Slag"). Planned 9,000tpa operation in Pori, Finland (NMT 72.5% equity)
courtesy of 10-year Slag supply agreement with SSAB. Investment decision with
JV partner, Critical Metals, expected Q3 2023. MOU with H2Green Steel for
potential second, larger operation in Boden, Sweden; and

 

·      Lithium Chemicals (earning 70% technology) - aiming to produce
battery quality lithium hydroxide from brine and/or hard-rock feedstocks using
patented ELi™ electrolysis process co-owned 30% by Mineral Resources Ltd.
Co-funded Pilot Plant trials Q2/Q3 2023 and Demonstration Plant trials H1 2024
preceding potential commercial operation with Bondalti Chemicals in Portugal.

 

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

 

 

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