Neometals completes deal with Metals X

Neometals  {ASX: NMT} has completed the previously announced transaction with Metals X {ASX:MLX} from the 25th January 2015.

MD Chris Reed proclaimed this as the next step in Neometals becoming a leading globally recognised  lithium producer.

Neometals Ltd {ASX: NMT} Has confirmed that its 70%-owned subsidiary, Reed Industrial Minerals Pty Ltd (RIM), has completed the transaction with Metals X Ltd {ASX: MLX} which was announced to the ASX on 22 January 2015.


Under the agreement, RIM has agreed to lease the lithium mining rights over a portion of the Hampton Area Location 53, which adjoins the Mt Marion Lithium Project, and to purchase an adjoining mining lease and associated infrastructure from Metals X.


Leading mining services provider Mineral Resources Limited {ASX:MIN} owns the remaining 30% of RIM and funds and operates the project through its subsidiary, Process Minerals International Pty Ltd.


Completion of the transaction will allow RIM to explore and develop extensions of the No 2 and No 2 West Lithium Deposits, located on the northern boundary of the Mt Marion Project  Previous drilling at the No 2 and No 2 West deposits indicates that lithium mineralisation continues into the newly leased tenements, providing RIM an opportunity to expand the current JORC resource with further exploration.


A new resource exploration potential estimate is being prepared as part of an extensive resource expansion and infill drilling program under development. In addition, the purchase of the adjoining leases and associated infrastructure will provide potential tailings storage, optimal waste dump positioning and access to an existing heavy haul road which will benefit the future development of Mt Marion.


Chris Reed, Managing Director, commented: “We are pleased to have completed another step towards transforming RIM into a globally significant lithium concentrate producer and supplier to the lithium-ion battery industry. The next step in the project’s development plan is to finalise binding offtake agreements which are well progressed, before we commit to a final investment decision.”