Neometals {ASX: NMT}

Neometals has signed an option agreement to sub-lease a site at West Kalgoorlie in Western Australia for its proposed development of a lithium hydroxide refinery.

The agreement gives Neometals a two-year option over the site, with a provision to extend it for another two years.

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Neometals {ASX: NMT}

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Neometals has signed an option agreement to sub-lease a site at West Kalgoorlie in Western Australia for its proposed development of a lithium hydroxide refinery. The agreement gives Neometals a two-year option over the site, with a provision to extend it for another two years.

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The company is currently undertaking front end engineering design studies as part of a broader feasibility study for the refinery. The site is located on the Great Eastern Highway, 50 miles by road from Mt Marion Lithium Operations, in which Neometals has a 13.8% stake.

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Neometals CEO Chris Reed said: “The strategy to move Neometals downstream towards lithium chemical production is part of a broader evolution of our lithium business arm.

“The aim is to develop a closed loop lithium ecosystem with access to the lithium raw material source, value adding for use in the battery supply chain and ultimately, recycling of spent batteries.

“We are already part of the global lithium supply chain, which gives us clear industry insights and confidence in the future demand outlook for lithium hydroxide from hard rock.”

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Neometals has also executed an MOU with the City of Kalgoorlie-Boulder for assistance for the proposed lithium refinery. The company confirmed that that the refinery will receive lithium concentrate feed from their own JV Mt Marion lithium mine.(NMT 13.8%).

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A final investment decision on the refinery plant construction is anticipated to be made in the June quarter of next year, and, subject to an investment decision, commissioning will begin in mid-2021.

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Neometals will seek offtake partners.