PERTH (miningweekly.com) – ASX-listed Neometals has accepted a A$30-million offer from Reed Industrial Minerals (RIM) to relinquish its spodumene offtake option rights at the Mt Marion lithium project, in Western Australia.
Neometals on Thursday told shareholders that the proceeds from the transaction would significantly bolster the company’s already strong balance sheet increasing its cash, receivables and investments to some A$107-million.
“We are pleased to realise significant value for our Mt Marion offtake rights from RIM and conclude our involvement with this world class asset that transformed Neometals,” said Neometals MD Chris Reed.
“We wish our former Mt Marion partners every success in the future. Neometals will maintain its involvement in the lithium supply chain through the recycling of production scrap and end-of-life lithium batteries, and portfolio of lithium focused technologies.”
Neometals in 2019 retained a life-of-mine annual offtake option for up to 57 000 t/y of Mt Marion 6% lithium oxide spodumene concentrate as part of sale of its equity interest in Mt Marion to its then RIM co-shareholders, Ganfeng Lithium and Mineral Resources.
The option rights were granted to Neometals for downstream processing, outside of China, in a business where it held a material equity interest.
Since then, Neometals has been actively evaluating the feasibility of downstream processing in Kalgoorlie and more recently in India under a memorandum of understanding with Manikaran Power.
The company said on Thursday that as a result of the relinquishment of the Mt Marion spodumene offtake option, a strategy review is underway on the Indian lithium refinery.