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Neometals to demerge titanium-vanadium assets, focus on lithium

In a demerger, Neometals shareholders would receive shares in the new ASX company.
four hands holding two puzzle pieces
The demerger would be expected to be completed in the March quarter of 2019

Neometals Ltd’s (ASX:NMT) board has approved plans to demerge its Barrambie Titanium‐Vanadium Project and associated technology assets into a new ASX‐listed company.

The spin-out will allow Neometals and the new company to separately focus on the development of their respective integrated lithium and titanium-vanadium strategies.

Neometals will fully focus on developing its fully‐integrated lithium business, underpinned by off-take rights to Mt Marion lithium concentrate.

READ: Neometals’ lithium strategy gets a thumbs-up from Hallgarten & Company

The new company would fully focus on the initial development of Barrambie as a direct shipping ore operation with continued evaluation of subsequent on‐site production of high-purity titanium and vanadium chemicals.

The demerger is subject to shareholder approval and is aims to be completed in the March quarter 2019.

READ: Neometals test work able to recover high-purity titanium product

Neometals’s managing director Christopher Reed said: “The company has reached an inflection point where both business arms need dedicated management, independent corporate structures and financial resources to realise optimal value.

“Neometals has an enviable lithium portfolio and a disciplined strategy to minimise risk and maximise returns from its lithium feedstocks.

Barrambie has potential to be a globally significant operation

“We understand the incredible potential of Barrambie, and with the application of the same staged development strategy we have used in the lithium business, we have every confidence it will become a globally significant operation.

“The demerger creates an opportunity for shareholders to retain exposure to both businesses and capital markets will gain clarity, courtesy of simplified commodity focus and corporate structure.”

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