Neometals {ASX: NMT} confirm they have furthered their non -core asset divestment program with another deal announced.
CEO Chris Reed announced they have sold and farmed out the gold rights over their Forrestania and part of the Barrambie projects.
Neometals Ltd (ASX:NMT)(“Neometals” or the “Company”) is pleased to announce that it has signed a binding Memorandum of Understanding (“MOU” or the “Agreement”) with a private mining group (“the Group”) regarding the acquisition and farm-in of the gold rights over the Company’s Forrestania Nickel and part of the Barrambie Titanium projects.
Forrestania Project: Sale of gold rights.
Under the agreement, the Group will acquire Neometals’ gold rights over the Forrestania Project which are held by Neometals’ subsidiary, Reed Exploration Pty Ltd for $200,000,
which has been received.
Barrambie Project: Earn-in agreement for gold rights.
The Group will earn a 75% interest in the gold rights of two exploration licences within the
Barrambie Project which is 100% owned by Neometals’ subsidiary, Australian Vanadium Corporation (Holdings) Pty Ltd (“AVC”). The 75% interest will be earned via spending $500,000 on exploration on the Barrambie Project over 2 years, with a minimum spend of $150,000 in the first year. AVC can elect to participate or revert to a 2% net smelter royalty, AVC will retain the rights to all other minerals over the tenement areas which adjoin the main granted mining lease which is the subject of the current Pre-feasibility Study.
With Neometals’ strategy being primarily focused on the advanced minerals market through the development of the Mt Marion Lithium Project and the Barrambie Titanium Project, the Company has been investigating opportunities to divest and monetise non-core assets. This Agreement represents strong further progress of this strategy, and allows the Company to extract value from assets it no longer considers a priority while retaining exposure to the assets should the Group make a commercial discovery.
ENDS
For further information, please contact:
Chris Reed
Managing Director
Neometals Limited
T: +61 8 9322 1182
E: info@neometals.com.au