Neometal’s strikes deal on another Lithium play
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 non-core nickel assets in Forrestonia , whilst at the same time emerging as Hannan’s major shareholder with around 40% of its shares.
As part of the deal Hannan’s will do an in specie distribution of the shares in its wholly owned subsidiary Scandinavian Resources and Neometals will end up with at least 13.5% of that company.
Scandanavian Resources owns a number of overseas projects led by its greenfields Lithium exploration play and also including Carbon and Cobalt projects in Scandanavia.
As Hannan’s Lithium project is of particular interest to Neometals, they will provide an ongoing technical assistance package to Scandanavian Resources in order to progress that and other projects in country.
As part of the divestment, Neometals has also agreed to a placement of $250,000 worth of Hannan’s shares at 0.4c per share and they will underwrite the last $250k of a $1.25m placement to be undertaken by Hannan’s as a condition precedent for the deal.
The placement subscription will be eligible for a 1 for 2 free attaching option exercisable at 0.4c within 2 years.
In total Neometal’s will contribute $1.25m in cash towards the deal which also includes cash held in its subsidiary company Reed Exploration, which will be sold to Hannan’s Reward as part of the deal.
At completion, Hannan’s Reward will focus just on Gold and Nickel projects in W.A and Neometal’s will again be in a position to progress potentially another solid Lithium play, this time in the mining friendly Scandanavia.