Neometals Ltd (ASX:NMT) has passed another milestone in the sale of its 13.8% stake in the Mt Marion Lithium Project with Chinese regulatory authorities approving the transaction.

The sale involves Mt Marion project partners Ganfeng Lithium Co Ltd and Mineral Resources Limited (ASX:MIN).

Confirmation this week by Ganfeng of the Chinese regulatory approval follows the clearance from the Australian Foreign Investment Review Board (FIRB) received earlier this month.

If all sale conditions are met, Neometals will receive $103.8 million in cash for the transaction at completion.

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

Parties to the sale are now dealing with all matters to progress to financial completion of the divestment of Neometals’ shareholding.

This includes formalising Neometals’ offtake option agreement and any appropriate adjustments to other ongoing Mt Marion contractual arrangements arising in connection with the divestment.

Life-of-mine offtake agreement

The sale agreement will see Neometals retain a life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.

READ: Neometals commissions first stage of battery recycling pilot plant

This will enable Neometals to pursue its downstream integration strategy involving the production of higher value lithium chemicals and capturing value from the recovery of critical metals, including lithium, from end-of-life lithium-ion battery recycling.

The strategy will be underpinned by certainty from proven feed supply.