Neometals {ASX: NMT} has announced a binding termsheet with Hannans Reward Limited which will divest their Forrestania nickel asset via the sale of subsidiary company Reed Exploration Pty.

Neometals Ltd {ASX:NMT} advises it has executed a binding termsheet with Hannans Reward Limited under which Neometals will divest its Forrestania nickel assets via the sale of the Company’s subsidiary company, Reed Exploration Pty Ltd (“REX”).

The transaction is consistent with Neometals’ ongoing strategy to divest non-core assets and focus on the development of its lithium and advanced materials business.
As part of the divestment, Neometals has also agreed to a placement of $250,000 worth
of HNR shares at 0.4c per share (approximately 8% of HNR’s issued capital). The
placement subscription will be eligible for a 1 for 2 free attaching option (exercisable at
0.4c within 2 years).
Under the terms of the transaction for the sale of REX:
1. Hannans will undertake a capital raising of $1.25 million from its shareholders. In
addition to its upfront $250,000 subscription, Neometals has agreed to underwrite
the last $250,000 of the Hannans’ capital raising;
2. Neometals is contributing a maximum of $1.25 million cash, through the placement,
underwriting and the cash assets of REX at completion;
3. Neometals will hold approximately 40% of the issued capital in Hannans at
completion, on an undiluted basis;
4. Hannans will divest its Swedish projects via an in specie distribution of the shares in
its subsidiary company Scandinavian Resources Pty Ltd (“Scandinavian Resources”)
to shareholders of which Neometals will receive at least 13.5%;
5. Neometals will assist Scandinavian Resources to realise lithium, cobalt and carbon
opportunities in Scandinavia through a technical assistance arrangement; and
6. the Hannans board will be re-constituted to comprise of two existing Hannans
directors and one director nominated by Neometals.

 
Completion of the sale of REX is subject to a number of conditions precedent, including
due diligence by both parties, execution of binding substantive agreements, completion
of the Hannans capital raising, receipt by Hannans of all necessary shareholder approvals
and receipt of any necessary regulatory approvals.

Neometals will keep the market informed on the progress of the transaction.

For further information, please contact:
Chris Reed
Managing Director
Neometals Ltd
+61 8 9322 1182
info@neometals.com.au
Media
Richard Glass / Michael Weir
Citadel-MAGNUS
+61 8 6160 4900