Innovative ASX-listed project developer Neometals is set to expand its exposure via a secondary listing on the AIM market of the London Stock Exchange. Admission to AIM is projected for the second half of this year as the company seeks to gain greater access to UK and European investment capital for four core projects in the burgeoning electric vehicle and energy storage solution sectors.
As the transition to a low carbon world continues to gather pace, Neometals appears to be positioning itself to capitalise on emergent global trends pivoting from traditional hard rock mining to eco-friendly materials recovery.
The company has initiated the process of listing on AIM with preparatory works required for admission already commenced. London-based securities firm Cenkos Securities has been appointed as adviser and broker in anticipation of listing later this year.
Neometals Managing Director, Chris Reed stated: “Neometals’ projects are advancing towards development decisions, so the time is right to maximise liquidity and better access the huge pools of European investment capital. Admission to the LSE (London Stock Exchange) extends the trading window available to investors and we look forward to leveraging off Cenkos’ strong track record in supporting ESG-focused companies. We also look forward to participating in LSE sustainability initiatives like the ‘Green Economy Mark’, which recognises companies deriving 50 per cent or more of their revenues from environmental solutions.”
Neometals will continue to trade on the ASX and no immediate capital raising is required, management reports.
In collaboration with its partners, the company has exposure to the battery and energy storage segments via four core projects, namely the Lithium-Ion Battery Recycling Project in Germany, the Vanadium Recovery Project in Finland and Sweden, the Lithium Refinery Project projected for India, and the Barrambie Titanium and Vanadium Project in Western Australia.
With two of the company’s major projects located in Europe, the proposed secondary listing on AIM appears to put Neometals in a strong position to access capital via the UK markets.
In Germany, the advanced Lithium-Ion Battery Recycling project under a joint-venture agreement with SMS group, a leading German supplier and builder of metallurgical plants, aims to deliver a showcase demonstration plant together with feasibility studies in anticipation of a decision for full-scale commercialisation.
Neometals aspires to generate revenue from the provision of recycling services as well as licensing and sale of recovered metals into saleable products. The demonstration plant trials are forecast to end around July next year with feasibility studies anticipated for completion in early 2022, ahead of a final investment decision.
Meanwhile in Scandinavia, the company is progressing the Vanadium Recovery Project with unlisted joint-venture partner Critical Metals. Neometals is the largest shareholder in Critical holding an approximate 15.4 per cent interest.
Critical has executed a ten-year agreement with Scandinavian steel company SSAB to access around 2 million tonnes of high-grade vanadium slag from operating steel mills, where it seeks to recover the vanadium from the slag. The project is at the pre-feasibility stage with a pilot plant projected to commence in the June quarter and an investment decision anticipated for the second half of 2022.
As previously reported by Neometals, Europe is a global leader in adopting electric vehicles evidenced by the fact the top fifteen nations with the highest share of electric car sales in 2020 are all located in Europe. The company believes the region to be the second largest global market based on lithium-ion battery recycling feed volumes.
The secondary listing in London looks like a bold move by Neometals as the company will now gain greater access to capital from the hottest regions in the global battery recycling sectors.
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By Matt Birney
