26/04/2017 - 11:00

Mt Marion JV partners decline Neometals offer

26/04/2017 - 11:00

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Neometals will be relying on third-party interest for the sale of its stake in the Mt Marion lithium mine, after joint venture partners Mineral Resources and Jiangxi Ganfeng Lithium declined pre-emptive rights to buy the stake.

Mt Marion JV partners decline Neometals offer
The Mt Marion lithium mine near Kalgoorlie.

Neometals will be relying on third-party interest for the sale of its stake in the Mt Marion lithium mine, after joint venture partners Mineral Resources and Jiangxi Ganfeng Lithium declined pre-emptive rights to buy the stake.

Neometals was offering its joint venture partners its 13.8 per cent stake in the Mt Marion operation for $US96 million under pre-emptive rights.

That offer has now passed deadline, with neither partner accepting the deal.

“As neither joint venturer has exercised their rights, Neometals is now entitled within the next 60 days to dispose of its equity interest in (Mt Marion) to a third party on terms no less favourable to Neometals than those offered to its joint venture partners,” Neometals said in a statement.

Neometals is now in discussions with interested parties and will advise the market of any material developments.”

The stake sale was announced earlier this month, with Ganfeng convening a meeting to seek shareholder approval for the exercise of its right to buy the stake, while MinRes said it was considering whether to exercise its first right of refusal.

Shares in Neometals were 1.5 per cent higher to 32 cents each at 11am.

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