This brings Reed’s total holding to 10,228,170 ordinary shares through personal, family and trust holdings, as well as more than 2.74 million performance rights.
The company has seen a surge in its share price, up 4.88% to 22 cents at market-end yesterday, after receipt of positive results from analysis of its zeolite products against leading commercial counterparts.
Test work results showed that Neometals’ product quality is comparable to industry leading zeolite products.
The bench-scale test work milestone has justified the company progressing to the next phase of development, demonstrating the technology at a pilot scale, which is set to begin in the September quarter.
Cashed up to develop three core projects
The company’s key assets are its lithium-ion battery recycling project, lithium refinery project, and its Barrambie Titanium Vanadium Project.
Neometals has a successful track record having acquired and developed the Mt Marion Project into the world’s second largest spodumene producing mine with Mineral Resources Ltd (ASX:MIN) and Ganfeng (HKG:1772).
The company exited its interest in the operation in stages generating around $200 million in returns, the final $104 million payment settled in March 2019.
This means Neometals has cash of over $110 million on the balance sheet to develop its three core projects.
Offtake option could be valuable for a refinery
Importantly, Neometals retained an annual offtake option for 57,000 tonnes of 6% spodumene concentrate for Mt Marion's life-of-mine.
This offtake would become potentially very valuable to the company should it proceed with the construction of a lithium refinery.