News Articles for Neometals

Cashed up Neometals is returning $11.3 million to shareholders even before production begins at Mt Marion in the December quarter. The savvy junior held $74 million in cash at 30 June and is distributing to shareholders some of the rewards of its great deal making. This is the second time in a year that Neometals have announced a dividend before production has even started.

New drill results suggest that Neometal's world-class Mt Marion Lithium Project near Coolgardie is set for even further growth in its total resource and that's in addition to the recently announced 160% increase. Neometals, who today announced the conclusion of their 147 hole drilling program at Mt Marion currently hold a 13.8% free carried stake in the project.

The recently released feasibility study into Neometals' patented "Eli' process that downstream processes Lithium, shows that for a $158m capital outlay, the project will return a wave of cash averaging $82m a year before tax every year for the next 20 years. It shows a net present value of AUD$638m which equates to around $1.14 a share on a fully dispersed basis.

SPECIAL REPORT: Mining stocks are again leading the way in shareholder returns, but this time it's not the iron ore players doing the business.

Shares in Tawana Resources were up 84 per cent today as the company moved focus from iron ore to lithium, while three more Western Australian companies announced new moves in the lithium sector as keen market interest in the metal continues.

With the Lithium boom well and truly captivating the market right now, Neometals have kicked the ball out of the park with a 160% upgrade to their Lithium resource at the Mt Marion project near Coolgardie. The resource is now the third biggest in the world at 60.5m tonnes grading 1.36% Lithium whereas it was previously sitting at just 23.24m tonnes grading 1.39%.

Lithium hopeful Pilbara Minerals has scored an $18 million equity injection, offtake agreement and downstream processing deal with an unnamed Chinese company.

Iron ore miner Mineral Resources has added another string to its bow, taking a 19.3 per cent stake in domestic gas supplier Empire Oil & Gas, a week after the company increased its slice of the Mt Marion lithium project.

Neometals have amassed an $80m war chest after banking another $19.65m paid by Mineral Resources, their partner in the Mt Marion Lithium project near Coolgardie in W.A. The company has also formed a second 70:30 partnership with Mineral Resources for the purposes of creating the first Lithium downstream processing project in WA utilizing their proprietory process.

Mineral Resources has upped its stake in the Mt Marion lithium project, one of the state's few mining operations under construction, to see out a week that had a series of deals for the metal.

Insatiable demand for Lithium in China has seen Neometals off take partner at the Mt Marion project in Coolgardie increase their contracted take or pay commitment for lower grade Lithium by 250%. Chinese company Ganfeng Lithium previously committed to take or pay for 100% of the 6% LIthium product and has now also commited to taking 200 000 tonnes a year of the 4%-6% product.

Chinese manufacturer Ganfeng Lithium has more than doubled its offtake agreement with Mineral Resources and Neometals for the Mt Marion project, as interest in the commodity continues to build.

Having successfully tipped Neometals share price to jump on three previous occasions, Euroz has again tipped the soon to be Lithium miner's share price to move north, this time by 23%. Euroz say their most recent analysis of the Mt Marion Lithium mine near Coolgardie, which is 26.9% owned by Neometals, shows the company's share price should be more like 53c instead of 43c.

With only months to go before making the leap into production, Neometals have discovered a new highly mineralized zone at their celebrated Mt Marion Lithium project in W.A. Grades are all above the project average of 1.39% Li2O and include a 186m intersection grading 1.82% Li2O from 95m, 139m grading 1.69% Li2O from 116m and 92m @ 1.54% Li2O from just 54m down.

SPECIAL REPORT: There's no doubt the boom has come to an end, but plenty of opportunities and projects remain in play.

ANALYSIS: Worldwide demand for lithium is rising and more than 20 companies in WA are on board for the ride.

John McGloin and Alex Davidson, who were formerly directors of Amara Mining, have been appointed as non executive directors of Perseus Mining.

Neometals have signed a global license to deploy the technology they plan to use at the goliath Barrambie Titanium Project in W.A. Neometals says their proprietary process has the potential to bring the cost at Barrambie to produce a tonne of titanium dioxide down to around US$572 per tonne from a more traditional industry standard price of up to US$2300 per tonne.

Shares in Platypus Minerals were down more than 31 per cent today as the company announced a $10 million deal to buy Belmont-based lithium explorer Lepidico.

Consummate deal maker Neometals is at it again, this time with ASX listed junior and 20% partner in its WA nickel assets, Hannans Reward. In a complex series of deals, Neometals will divest its nickel assets in Forrestonia , whilst at the same time emerging as Hannan's major shareholder with around 40% of its shares and a 13.5% stake in an overseas Lithium play.

In an extraordinary move, Perth based Neometals will pay a dividend even ahead of production after amassing a $67m pile of money via a series of sublime deals surrounding their Mount Marion Lithium play. They will return $11.2m of the $67m of cash they have amassed back to shareholders by way of a 2c per share un-franked dividend and capital payback.

Neometals shares have closed more than 9 per cent higher on news its Mt Marion joint venture partner Jiangxi Ganfeng has exercised its option to acquire an additional 18 per cent in the lithium project for $US27 million.

At a time when junior miners are screaming for cash, no such problem exists at the David and Chris Reed led Neometals. Last quarter the company reported cash of $31m and today they announced their Chinese partner in the Mt Marion Lithium project near Coolgardie will pay them another $38m to increase their stake in the project.

With the construction of their Lithium plant underway at Mt Marion in W.A, Neometals appear to have received a major economic boost for the project ahead of it springing to life in mid 2016. In a sign that demand for Lithium is on the increase, leading Chinese lithium producer, Ganfeng Lithium Co have agreed to either take or pay for 80 000 tonnes of sub 6% spodumene concentrate per annum.

WA is one of the world's largest producers of lithium, but a plan to diversify from mining into advanced manufacturing opportunities will be tricky to shore up.

Soon to be Lithium producer Neometals has added another string to its bow by signing a binding term sheet to secure the exclusive global rights to a proprietary hydrometallurgical technology.

Perth based Neometals has commenced a greenfields exploration project in the celebrated Forrestania nickel region west of Norseman in Western Australia. The company's “Stormbreaker” prospect is just 7km north and along strike from Western Area's renowned Flying Fox mine which is widely recognized as one of the highest grade operating nickel mines in the world. Flying Fox has a total high grade resource of over 1.9m tonnes grading 5.2% nickel with grades as high as 6.1% at depth.

West Australian Lithium hopeful Neometals along with heavyweight partner Mineral Resources have launched a definitive feasibility study into their patented “Eli process' to produce 20 000 tonnes of

Cashed up Perth based Lithium heavyweight, Neometals, is hoping to lock away a sizeable part of its 15-25m tonne exploration target with a substantial $3m drilling campaign at the Mt Marion Lithium

SPECIAL REPORT: The potential for mass production of electric cars is among a number of high-technology trends sparking interest in Western Australia's lithium sector, with a series of companies touting projects to meet a forecast surge in demand.

Perth companies Neometals and Mineral Resources have marked the start of construction at the Mt Marion lithium project, with first production targeted for mid-2016.

Australia is likely to emerge as the clear leader in global lithium production after Perth companies Neometals and Mineral Resources today announced an offtake and funding agreement with a Chinese producer for the planned Mt Marion mine.

Domestic processing of lithium could provide a value-adding opportunity for an industry WA already dominates.

Metals X is aiming to become one of Western Australia's biggest gold miners after announcing updated plans to develop its Central Murchison project, with mining to set to commence in July this year.

West Perth-based miner Metals X has completed a $40.4 million pre-pay arrangement with Citibank for the production of over 30,000 ounces of gold.

West Perth-based miner Metals X has reported a 332 per cent full-year profit increase to $37.4 million, alongside a 247 per cent surge in revenue to $238.6 million.

Perth exploration firm Hannans Reward has entered into a joint venture agreement with Reed Resources for 20 per cent interest in its Lake Johnston nickel sulphide project west of Norseman.

Metals X has been forced to increase the price it is paying for Reed Resources' Meekatharra gold project to $9.9 million after administrators announced a surprise competing bid had been lodged just before a creditors meeting on Thursday.

Metals X has bought the Meekatharra gold operations for $7.7 million less than a year after the holding company – a subsidiary of Reed Resources – was placed into the hands of administrators.

Mining and engineering contractors were the biggest losers today when the S&P Dow Jones rebalanced all of its Australian indices, with RCR Tomlinson one of the few to buck the trend.