Neometals extends FID deadline for further due diligence at Vanadium Recovery Project, Sweden

Battery metals specialist Neometals (ASX:NMT) has extended the deadline to make a Final Investment Decision (FID) for its Vanadium Recovery Project in Sweden to 30 September 2023.

The company reports the FID deadline has been extended to allow for further due diligence evaluation work and negotiations with potential financiers. 

SSAB EMEA and SSAB Europe (collectively SSAB) are supportive of the progress that the special purpose vehicle for the project, Recycling Industries Scandinavia (RISAB), has made, and Neometals says the parties are in ‘advanced’ discussions to formalise a corresponding extension to the FID deadline under the SSAB slag supply agreement to align with project financing timelines.

Neometals holds a 72.5% interest in the Vanadium Recovery Project, which is in the financing stage ahead of a decision to construct and produce ‘high-purity’ vanadium pentoxide from ‘high-grade’ vanadium-bearing steelmaking by-product generated by SSAB in Scandinavia.

RISAB has engaged Nordic investment banks SEB (STO:SEB-A) and Aventum Partners to lead the financing processes for the Vanadium Recovery Project. 

The company says project financing activities are progressing well, with due diligence led by the European Investment Bank and a preferred banking club. Additionally, Neometals says project-level equity finance is attracting ‘good interest’ from Nordic and international investors. 

Commenting on the revised FID deadline, Neometals Managing Director Chris Reed says: “The project team has made outstanding progress towards financing the Vanadium Recovery Project. We look forward to advancing the financing discussions with the interested parties and progressing to a FID in the coming quarter.”

The project team has made outstanding progress towards financing the Vanadium Recovery Project

Neometals is an ASX-listed battery metals producer focused on developing a suite of green battery materials processing technologies to reduce reliance on traditional mining and processing while supporting circular economic principles.

Along with the Vanadium Recovery Project in Sweden, the company has also developed a proprietary process to recycle lithium-ion batteries and is jointly developing a patented technology to purify and electrolyse lithium chloride solutions with Mineral Resources (ASX:MIN).

The company had $32.353 million cash at hand as of 31 March 2023, according to its latest quarterly report published on 28 April 2023.

Write to Harry Mulholland at Mining.com.au

Images: Neometals Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.