Neometals has announced its intention to sell its 13.8 per cent interest in the Mt Marion lithium project in Western Australia for around US$96 million ($125 million).
The company said Mt Marion was an “excellent investment” for the company and its divestment at this point “makes strategic sense”.
“Although fully committed to the ongoing strength of the lithium mineral cycle, leveraging against the continuing unprecedented demand for battery storage minerals, it is timely for Neometals to re‐direct its capital and energies to higher margin downstream opportunities,” Neometals said.
The contract is expected to be completed by May this year, if the company’s partners, Ganfeng Lithium and Mineral Resources, exercise their pre-emtive rights to acquire the Neometals’ shareholding.
Mineral Resources subsidiary Process Minerals International said it is considering its first right of refusal to purchase the Neomeals interest in Mt Marion.
If both partners exercise their rights they will be entitled to purchase on half of the shares offered by Neometals, but if one declines, the other can purchase the entire 13.8 per cent interest.