Neometals (ASX:NMT) reports the Finnish Vanadium Recovery Project (VRP1) special purpose vehicle, Recycling Industries Scandinavia AB (RISAB), is making solid progress in securing debt and equity financing required to make a final investment decision (FID).
The innovative battery materials recycler has a 72.5% interest in VRP1, with Critical Metals holding 27.5%.
Neometals reports VRP1 is at the financing stage ahead of a decision to construct and produce high-purity vanadium pentoxide (V2O5) from ‘high-grade’ vanadium-bearing steel making by-product (slag) generated by SSAB EMEA AB and SSAB Europe Oy in Scandinavia.
Due to the additional time required for the completion of the equity and financing streams, RISAB, Neometals and Critical Metals have extended the timeline for consideration of the FID.
SSAB continues to be supportive of the progress that RISAB has made and the parties are in advanced discussions to formalise an extension to the FID deadline under the SSAB slag supply agreement to align with the updated project financing timelines.
RISAB has engaged leading Nordic investment banks, SEB and Aventum Partners, to lead VRP1 financing processes.
“Neometals has developed and is commercialising three environmentally-friendly processing technologies that produce critical and strategic battery materials at lowest quartile costs with minimal carbon footprint“
Both equity and debt work streams are advancing towards having binding agreements in November 2023.
Neometals Managing Director Chris Reed says: although it has taken longer than originally envisaged, good positive progress is being made towards financing the Finnish Vanadium Recovery Project.
“Neometals has developed and is commercialising three environmentally-friendly processing technologies that produce critical and strategic battery materials at lowest quartile costs with minimal carbon footprint.”
Write to Adam Orlando at Mining.com.au
Images: Neometals
