REG - Neometals Ltd - Vanadium Recovery Project Update

NeometalsAnnouncement

02/10/2023 08:45

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RNS Number : 3391O  Neometals Ltd  02 October 2023

2 October 2023

Neometals Ltd

("Neometals" or "the Company")

Vanadium Recovery Project Update

 

Highlights

·     Shareholders in Neometals' vanadium recovery project have extended
the timeline for Financial Investment Decision ("FID");

·      Project level equity finance advancing with preferred investor;
and

·    Debt financing club, led by European Investment Bank, also
progressing favourably with credit approval expected in October 2023.

Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT)
("Neometals" or "the Company"), advises that the Finnish Vanadium Recovery
Project ("VRP1") special purpose vehicle, Recycling Industries Scandinavia AB
("RISAB"), is making solid progress in securing debt and equity financing
required to make a FID.

Neometals has a 72.5% interest in VRP1, with Critical Metals Ltd ("Critical
Metals") holding 27.5%. VRP1 is at the financing stage ahead of a decision to
construct and produce high-purity vanadium pentoxide ("V2O5") from high-grade
vanadium-bearing steel making by-product ("Slag") generated by SSAB EMEA AB
and SSAB Europe Oy (collectively "SSAB") in Scandinavia.

Due to the additional time required for the completion of the equity and
financing streams, RISAB, Neometals and Critical Metals have extended the
timeline for consideration of the FID.  SSAB continues to be supportive of
the progress that RISAB has made and the parties are in advanced discussions
to formalise an extension to the FID deadline under the SSAB slag supply
agreement to align with the updated project financing timelines.

RISAB has engaged leading Nordic investment banks, SEB and Aventum Partners,
to lead VRP1 financing processes. Both equity and debt work streams are
advancing towards having binding agreements in November 2023.

Neometals Managing Director Chris Reed said:

"Good positive progress is being made towards financing the Finnish Vanadium
Recovery Project. Although it has taken longer than originally envisaged, we
remain positive on a successful outcome".

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

 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-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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