Neometals Ltd announced that it has executed binding agreements to acquire 100% of the lithium rights of the Mt Edwards Lithium Project, for cash consideration of $2.5M and additional contingent payments upon satisfaction of certain milestones and a royalty as described below. As part of the acquisition, Neometals will also acquire the underlying tenure to all of the tenements comprising the Mt Edwards Lithium Project (other than M15/87), together with some neighbouring tenements and the nickel rights on an adjoining nickel rights package.
The Mt Edwards Lithium Project is located 40km south of the Mount Marion Lithium Project (Neometals 13.8%, through Reed Industrial Minerals Pty Ltd). The project is located centrally within what is emerging as a highly endowed and globally significant lithium province.
Neometals is already a key participant in this region with its 13.8% interest in the Mount Marion mine and its continuing evaluation of a local lithium hydroxide facility in the Kalgoorlie region to process its offtake rights from Mount Marion (a minimum of 12.37% of production from February 2020). The acquisition of the Mt Edwards Lithium Project adds a prospective brownfield holding to the pipeline of potential additional sources of spodumene to support the strategy to build an integrated lithium business. Neometals also owns 36% of Hannans Ltd (ASX:HNR) which holds a significant tenure package at Mt Holland, adjoining Kidman Resources/SQM’s Early Grey Lithium Project in the Yilgarn Region.
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