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Neometals (ASX:NMT) secures offtake agreement with Glencore

ASX News, Materials
ASX:NMT      MCAP $62.28M
12 July 2023 16:45 (AEST)

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Neometals (NMT) has secured a legally binding offtake agreement with international mining giant Glencore, towards the profitability of its VRP1 scheme.

Under the agreement, Neometals’ majority-owned subsidiary Novana will exclusively sell recovered vanadium to Glencore.

Novana is a 100 per cent owned subsidiary of VRP1’s joint venture company, Recycling Industries Scandinavia AB (RISAB).

Neometals has a 72.5 per cent ownership interest in RISAB, with Critical Metals holding the remaining 27.5 per cent stake.

“The offtake agreement further emphasises the anticipated future need for high-purity material in the market,” NMT Managing Director Chris Reed said.

“This is supported by significant expected demand from the vanadium redox flow battery sector and other potential high purity applications.”

NMT closed 11.7 per cent higher, trading at 52.5 cents at market close.

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