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- Neometals (NMT) subsidiary Australian Titanium (ATI) is set to enter a critical minerals collaboration with Australian Vanadium (AVL)
- The collaboration will see AVL explore opportunities to process co-product vanadium concentrate from Neometals’ Barrambie project
- The companies will also look at co-locating or sharing non-process infrastructure near AVL’s proposed Tenindewa processing plant site
- AVL said it believes “significant” vanadium, titanium and iron processing opportunities will flow from the collaboration
- AVL shares are up 7.14 per cent to 3 cents per share and NMT shares are up 1.7 per cent to 89.5 cents at 12:17 pm AEDT
Neometals (NMT) subsidiary Australian Titanium (ATI) has signed a non-binding term sheet with Australian Vanadium (AVL) to explore opportunities involving NMT’s leading rock titanium-vanadium deposit.
The critical minerals collaboration will let AVL explore opportunities to process co-product vanadium concentrate from Neometals’ Barrambie project.
The Barrambie project is a large vanadium-titanium-magnetite (VTM) resource, hosting high-grade hard rock titanium and vanadium resource subsets. It recently underwent a pre-feasibility study, considering the production of an ilmenite concentrate and an iron or vanadium concentrate co-product, adequate for processing by AVL.
The collaboration will also allow the companies to co-locate or share non-process infrastructure near AVL’s proposed Tenindewa processing plant site.
Australian Vanadium Managing Director Vincent Algar said the agreement would help solidify Australia’s position as a leading producer of vanadium products.
“Being able to process our own concentrates and also offer processing infrastructure
to other projects will bring great benefit to the region and Australia as a whole and establish Australia as a cornerstone producer of vanadium products for green steel and energy storage applications,” Mr Algar said.
“We have developed a good relationship with the team at Neometals and ATI and look forward to finalising the details of this opportunity with them.
“The projects are well aligned, and the technical knowledge held between the two teams will generate further opportunities for cost optimisation for all parties.”
The term sheet is non-binding and has a term of nine months, which is extendable in six-month increments with mutual agreement.
Mr Algar suggested that AVL’s agreement could open the door to further collaborations.
“AVL welcomes discussions with other companies in the region that see benefit in the hub approach that AVL and Neometals are considering,” he said.
AVL said it believed “significant” vanadium, titanium and iron processing opportunities could flow from the collaboration.
AVL shares were up 7.14 per cent to 3 cents per share and NMT shares were up 1.7 per cent to 89.5 cents at 12:17 pm AEDT.
