JOHANNESBURG (miningweekly.com) – ASX-listed Mineral Resources has exercised its option to acquire a further 13.1% shareholding in Reed Industrial Minerals from fellow-listed Neometals, taking its shareholding in the Mt Marion project to 43.1%.
Mineral Resources subsidiary Process Minerals International would pay Neometals $19.65-million for the additional stake in the Western Australia-based project, the joint venture (JV) partners announced on Friday.
Neometals’ estimated cash balance upon settlement was expected to be about A$80-million.
Mineral Resources’ interest in the lithium JV was now equal to that of Chinese offtake partner Ganfeng, which also owned 43.1%, while Neometals’ interest was 13.8%.
Ganfeng earlier this week agreed to an expanded offtake of 200 000 t/y of spodumene concentrate of between 4% and 6% lithium-oxide content from Mt Marion.
The Mt Marion project was considered a globally significant lithium deposit, containing total indicated and inferred mineral resources of 23.24-million tons at 1.39% lithium oxide and 1.43% iron oxide, at a cutoff grade of 0%.
Meanwhile, Neometals’ focus was on the commercialisation of its patented ‘Eli’ downstream lithium-processing technology, which was held in Reed Advanced Materials (RAM). RAM was finalising a definitive feasibility study for a LCE lithium hydroxide plant, with results expected later this month.
Neometals has a 70% beneficial interest in RAM and Mineral Resources a 30% interest.