Neometals signs MOU for $692m project

Neometals has entered into a memorandum of understanding with a Chinese research organisation to jointly advance development of the miner’s Barrambie titanium-vanadium project.

The Institute of Multipurpose Utilisation of Mineral Resources Chinese Academy of Geological Sciences (IMUMR) and Neometals will commence evaluation activities with the aim of finalising a 50-50 joint venture.

Neometals said IMUMR had expertise and deep relations with China’s titanium and vanadium chemical processing industry.

“IMUMR has a Chinese national mandate that includes development of upstream supply chains for industries of strategic relevance to China,” it said.

“This MOU is significant as the partnership sets the stage for value realisation at Barrambie and has the potential to reduce Neometals’ development costs considerably.”

IMUMR has previously conducted pyrometallurgical testwork on bulk-ore samples from Barrambie, and is “intimately familiar” with the orebody, according to Neometals.

Neometals released a definitive feasibility study for the project in May, which detailed a capital cost of $692 million, with a final investment decision slated for the December quarter of 2020.

It will then take 18 months to develop the project.

Shares in Neometals were up 6.3 per cent to trade at 20 cents each at 12.12pm AEST.