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Battery Metals: Neometals in halt pending ‘material’ JV transaction, Core up ~55pc on Finniss project approvals
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Partnering with other large companies to develop projects is a strategy which has paid off handsomely for Neometals (ASX:NMT) in the past. The diversified battery metals play is now in a trading halt pending a ‘material joint venture transaction’ announcement.
After developing the major Mt Marion lithium mine in WA — a rare and impressive feat for a junior-listed company — Neometals sold its 13.8 per cent stake for $103m in early 2019. Now, the cashed-up explorer wants to do the whole thing again.
At the moment, all three of Neometals’ flagship development projects have joint venture MOU’s attached to them.
These include a battery recycling plant in Canada, the Barrambie vanadium-titanium project in WA, and a lithium chemical plant in India.
To be clear, these MOU’s are not legally binding — just think of it as the ‘starting point’ for contract negotiations.
But it looks like one of these negotiations may have progressed to the all-important JV stage.
The trading halt remains in place until the start of trading on Tuesday April 7, 2020 or when the company makes an announcement.
NOW READ: Have the next crop of battery metals producers been oversold?
Who said sentiment was in the sh*tter?
Core Lithium (ASX:CXO) is up ~40 per cent this morning after locking in crucial Northern Territory government approvals for its advanced Finniss lithium project.
“With project approvals now in place and mine-life likely to double or even triple as we update our feasibility study by mid-2020, Core’s Finniss lithium project is positioned at the front of the line of new global lithium supply as EV manufacturing recovers post COVID-19,” managing director Stephen Biggins says.
Northern Territory Minister for Primary Industry and Resources Paul Kirby said the resources sector would play a huge role in recovery from the COVID-19 crisis.
“The first three years of this project are expected to inject over half a billion dollars into the NT economy and create around 200 jobs for Territorians within an hour of Darwin,” he says.
“We will get through this crisis, and the Territory Labor government is working hard to kick-start our economic recovery, including creating local jobs for Territorians.”
Core wants to complete offtake arrangements and have Finniss construction-ready later in 2020, ahead of sourcing project debt and equity.
