Neomoetals {ASX: MTL} have confirmed that the shareholders of Chinese based Ganfeng have approved the transaction with Neometals for the Mount Marion lithium project.

The final hurdle is for the approval of the Jiangxi regional government.

Mt Marion Lithium Project – Ganfeng shareholder approval

Neometals Ltd and Mineral Resources Limited refer to their previous announcement regarding the execution of formal agreements with China’s second largest lithium producer, Jiangxi Ganfeng Lithium Co., Ltd, in respect of Ganfeng’s equity investment in the Mount Marion Lithium Project.

Neometals and MIN are pleased to advise that Ganfeng’s shareholders today approved the transactions contemplated by the formal agreements. This satisfies the condition precedent in the formal documents for receipt of Ganfeng shareholder approval.

The formal agreements remain conditional upon Ganfeng receiving approval of the transaction from the Jiangxi Provincial Government, which is due to be completed within the next week.

Subject to the above condition, financial close of the transaction is expected to occur in early October 2015.