Neometals says to exit lithium JV
PERTH (miningweekly.com) – ASX-listed Neometals plans to divest of its 13.8% stake in the Reed Industrial Minerals joint venture (JV) for $96-million.
The JV vehicle, which is held with fellow-listed Mineral Resources and China’s Ganfeng Lithium, owns the Mt Marion lithium project, in Western Australia.
Under the terms of the JV agreement, the project partners will have a 30-day period to exercise an option to buy Neometals’ share in the JV at the nominated price. If the JV partners do not exercise this right, Neometals can offer the stake to third parties.
Neometals chairperson Steven Cole told shareholders in a letter on Friday that the divestment of the company’s minority interest in the upstream Mt Marion mine and concentrator made strategic sense for the company, with the proceeds from the sale enabling the company to realise optimum value from its pipeline of other growth options.
Cole said that while Neometals was fully committed to the ongoing strength of the lithium battery thematic, it was timely for the company to redirect its capital and energy to higher-margin downstream opportunities, as well as the company’s titanium assets.
“Mt Marion has been an excellent investment for Neometals. Your company takes pride in having identified the significant opportunity presented by the lithium market and having successfully co-developed Mt Marion into the most significant new source of lithium feedstock in decades,” he added.
The project shipped its first product in February and is expected to produce some 280 000 t/y of 4% to 6% lithium spodumene concentrate.
Mineral Resources in August 2016 flagged the possibility of selling its 43.1% stake in the JV.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
