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Neometals Ltd

Neometals declares partially franked dividend, cash levels remain high

Eligible investors who are on the shareholder register by next Wednesday will receive the dividend.

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The company has $116 million in cash to deploy on its strategic initiatives

Neometals Ltd (ASX:NMT) has declared a dividend of 2 cents per share, of which 1 cent, or half the dividend, will be franked.

This will result in the company paying out around $11 million, which will leave it with a cash balance of $116 million.

In order to receive the dividend shareholders must hold shares in Neometals on the record date of 8 May 2019 being next Wednesday.

READ: Neometals boosts cash balance to $131 million, multiple valuation catalysts ahead

The main reason for Neometals’ healthy cash balance is the divestment of its interest in the Mt Marion Ltihium Project for $103.8 million.

As part of the sale agreement, Neometals has secured a binding life-of-mine annual offtake option for 57,000 tonnes a year of 6% spodumene concentrate from the mine.

The option provides Neometals with potential feedstock for downstream processing into higher-margin lithium chemicals.

Proactive caught up with the company’s managing director Chris Reed in late March 2019 for an update.

Quick facts: Neometals Ltd

Price: $0.18

Market: ASX
Market Cap: $98 m
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Neometals secures lithium offtake and potential feedstock from Mt Marion...

Neometals Ltd (ASX:NMT) managing director Chris Reed updates Proactive Investors on the lithium developer’s recent divestment of its Mt Marion Lithium Project for $103.8 million.   As part of the sale agreement, Neometals has secured a binding life-of-mine annual offtake option...

on 27/3/19

2 min read