Neometals Ltd (ASX:NMT) Secures Second EU Investment for Finnish Vanadium Recovery Project
Funding Details
Neometals Ltd (ASX:NMT) has executed a project agreement with EIT RawMaterials, securing a second tranche of €0.494 million (A$818k) in grant funding. EIT RawMaterials will increase its minority shareholding in RISAB to 2.2% at a pre-money valuation of €50 million (A$82.8M), with the potential for up to a total €10 million investment within 18 months.
Project Development
The additional funding will support technical work programs alongside the ongoing project financing process for the Finnish Vanadium Recovery Project VRP1 in Pori, Finland. This follows EIT RawMaterials’s initial €0.5 million investment in September 2024. VRP1 aims to produce high-purity vanadium pentoxide from vanadium-bearing steel slag at low operational costs and a low carbon footprint. Novana Oy, through RISAB, is conducting a project financing selection process seeking approximately €400 million, managed by SEB and Aventum.
Executive Comments
Managing Director Christopher Reed said, “We welcome the continued support of EIT RawMaterials through this second tranche of funds to maintain the ongoing technical work programs in parallel with the project financing process. With the VRP1 conditionally confirmed for EIB debt financing, we look forward to formally securing the remaining equity and debt funding. We hope to capitalise on the significant support from the Finnish State and EU to deliver Europe’s first domestic producer of high-purity vanadium, a critical material for the production of high-strength steel, aerospace titanium alloys and stationary energy storage batteries.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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