Neometals Ltd announced it had increased its stake in the incorporated joint venture company, RISAB, which is developing the Finnish Vanadium Recovery Project (VRP1).
Following Critical Metals Ltd’s contribution of $300,000, Neometals, through its wholly-owned subsidiary Ecometals Pty Ltd, is entitled to an additional 22.5% of RISAB ownership (72.5% total) from the conversion of its A$3,000,000 shareholder loan. The change in RISAB ownership interests was contemplated in the JV shareholders’ agreement
Neometals and Critical are collaborating through RISAB to reach a Final Investment Decision (FID) to build a plant in Pori, Finland, to process and extract high-purity vanadium pentoxide (V2O5) from SSAB slag in Scandinavia. Avanti Materials Ltd, a wholly owned subsidiary of Neometals, has licenced to RISAB its vanadium recovery processing flowsheet (VRP Technology) for VRP1. RISAB also has a second collaboration possibility in Scandinavia (H2Green Steel feedstock, Boden – Sweden location) to implement the VRP Technology.
Neometals, Critical, and RISAB are progressing with both equity and debt financing activities for VRP1 in preparation for an FID in June 2023. The FID is conditional on successful project finance outcomes and conversations with equity and debt providers, including the European Investment Bank (EIB), led by Scandinavia’s best investment banks and consultants. Given the current market conditions, Neometals intends to dilute its equity interest in VRP1 at an Ecometals or RISAB level rather than the dilution of its listed stock.
