Neometals and Mineral resources add to Ganfeng lithium deal

Neometals Ltd {ASX: NMT} and Mineral Resources Ltd.{ASX: MIN}
are pleased to advise that Ganfeng has agreed to expand the scope of the offtake
arrangements to take-or-pay an additional 80,000 tpa of spodumene concentrate of
between 4% and 6% Li2O content.

 

28 January 2016

 

Lithium offtake arrangements expanded at Mt Marion Project

Neometals Ltd {ASX: NMT} and Mineral Resources Ltd.{ASX: MIN}
refer to their announcement dated 28  September 2015 regarding financial close of
the Mt Marion Project Offtake and Equity Investment with China’s leading lithium
producer, Ganfeng Lithium Co.

 

Under the initial offtake arrangements between Ganfeng and the project vehicle, Reed
Industrial Minerals Pty Ltd, Ganfeng agreed to take-or-pay 100% of the 6% Li2O,
chemical grade spodumene concentrate produced from the Mt Marion Project.
Metallurgical test work has identified an additional spodumene product can be generated
through the addition of a flotation circuit to the current beneficiation plant. Neometals and
MIN are pleased to advise that Ganfeng has agreed to expand the scope of the offtake
arrangements to take-or-pay an additional 80,000 tpa of spodumene concentrate of
between 4% and 6% Li2O content, generated by flotation at agreed discounts to the market prices for the 6% Li2O product.
The expansion remains conditional on RIM and MIN (via its wholly owned subsidiary,
Process Minerals International Pty Ltd) agreeing and finalising the necessary variations to
the Mining Services Agreement to cover the production of the lower grade product, which
will include the addition of a flotation plant at the Mt Marion Project. The variation will be
concluded on completion of a detailed metallurgical test program currently being
undertaken.
For further information, please contact:
Chris Reed
Managing Director Neometals Ltd
info@neometals.com.au
Bruce Goulds
CFO/Company Secretary
Mineral Resources Limited
+61 8 9329 3600
bruce.goulds@mineralresources.com.au