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Neometals looks to have timed Mt Marion exit well

The sale price for March quarter shipments is 15% lower than December quarter shipments.
aus cash bank notes
The company plans to integrate vertically and build a refinery

Neometals Ltd (ASX:NMT) has timed the divestment of its 13.8% ownership in the Mt Marion Lithium Project well as product prices have taken a tumble.

The sale price for 6% spodumene concentrate shipments for the March 2019 quarter will be $US791.84 per dry metric tonne (dmt), compared with US$930.80/dmt for the prior quarter.

READ: Neometals closer to completing $103.8 million sale of Mt Marion lithium interest

Neometals is in the process of divesting its equity interest in the lithium operation for $103.8 million cash.

Earlier this week, purchaser Ganfeng Lithium Co Ltd advised that it had obtained clearance from the Australian Foreign Investment Review Board (FIRB) for its part of the transaction.

The only remaining condition to satisfy for the acquisition is confirmation by Chinese regulatory authorities of their acceptance of Ganfeng’s necessary filings.

The sale agreement with co-shareholders Ganfeng and Mineral Resources Limited (ASX:MIN) will see Neometals retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

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