REG - Neometals Ltd - Vanadium Recovery Strategy Update

NeometalsAnnouncement

30/10/2023 07:15

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RNS Number : 6236R  Neometals Ltd  30 October 2023

This announcement contains inside information

 

30 October 2023

 

Neometals Ltd

("Neometals" or "the Company")

 

Vanadium Recovery Strategy Update

 

Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT)
("Neometals" or "the Company"), advises that it has provided its partner in
the Finnish vanadium recovery project ("VRP1"), Critical Metals Ltd ("Critical
Metals"), with notice that it does not wish to proceed with the construction
of a vanadium recovery facility. Despite the potential lowest-quartile
operating cost and low-carbon footprint, the state of the global financial
markets dictate that the Company preserves its cash balance and not contribute
further material funding to VRP1 evaluation activities.

 

Neometals earned a 72.5% interest in VRP1 through its ownership in Recycling
Industries Scandinavia AB ("RISAB"), with Critical Metals holding 27.5%. RISAB
has evaluated the feasibility of producing high-purity vanadium from steel
slags under a conditional take-or-pay feedstock agreement ("Feedstock
Agreement"). The Feedstock Agreement requires a substantial prepayment and
financial guarantees from RISAB's shareholders.  The Neometals' board has
formed the opinion that it will not agree acceptable equity financing terms
within the required timeline for consideration of the VRP 1 financial
investment decision despite having navigated an extensive technical due
diligence process with its preferred equity and debt providers.

Neometals has requested that RISAB consider alternative methods of funding,
including outright sale of the VRP1 project holding company. However,
Neometals intends to revert to a technology licensing business model to
commercialise its proprietary vanadium recovery process ("VRP Technology").

Neometals retains 100% ownership of the VRP Technology via wholly owned
subsidiary Avanti Materials Ltd and will continue to engage directly with
potential partners, including steel makers producing suitable steel slags,
under a low-capex, low-risk technology licensing business model to generate
future royalty income.

Neometals Managing Director Chris Reed said:

"Despite VRP 1 having compelling cost and carbon footprint metrics, today's
commodity and financial market conditions preclude a positive investment
decision at this time. We must realign our commercialisation strategy and
pursue a technology licensing model going forward."

Authorised by the board of Neometals.

ENDS

 

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 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 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 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 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
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a 50:50 JV with related
entity to 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.

 

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

 

 

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