Neometals Signs MoU With IMUMR to Advance Development of Barrambie Ti-V Project

BEIJING (Asian Metal) 9 Oct 19 – On October 4, Australian-based Neometals Ltd. announced that it has entered into a memorandum of understanding (“MOU”) with Chinese research organization, the Institute of Multipurpose Utilization of Mineral Resources Chinese Academy of Geological Sciences (“IMUMR”) to jointly advance development of the Company’s Barrambie Titanium-Vanadium Project. The MOU will commence with evaluation activities (including a hydrometallurgical processing demonstration plant) and outlines a potential pathway towards a 50:50 joint venture to advance the exploitation of the Barrambie Project (“JV”).

Under the MOU, Neometals’ current pilot test work program for the production of high-purity titanium and vanadium chemicals from the titanium-rich Eastern Band of Barrambie will continue with beneficiation occurring in Australia. Subject to IMUMR and the Company being satisfied with the pilot study results, and subject to a decision to proceed with the Demonstration Plant, mineral concentrate will be sent to China in the first half of 2020 for further processing.

IMUMR will fund the Demonstration Plant at its extensive test work facilities in China and if the results from Demonstration Plant trials are satisfactory, the parties will jointly fund a Class 3 Engineering Cost Study (“ECS”) to evaluate a mining and concentrating operation at Barrambie with subsequent downstream processing in China. Following completion of the ECS, the parties will review the ECS to determine whether to proceed to a FID and negotiate the terms of the 50:50 JV.