THE BOURSE WHISPERER: Neometals (ASX: NMT) woke the market with a start by announcing it has given notice to its Joint Venture partners in the Mt Marion lithium project of its decision to sell all the company’s 13.8 per cent stake in the project vehicle, Reed Industrial Minerals Pty Ltd (RIM), for around US$96 million ($125 million).
Neometals explained that under terms of the Shareholders’ Agreement for RIM, Mineral Resources Limited via its wholly owned subsidiary Process Minerals International Pty Ltd and Ganfeng Lithium Co., Ltd via GFL International Co., Ltd (GFL), have 30 days from receiving Neometals’ notice, to decide whether to exercise a pre‐emptive right to buy Neometals’ shares in RIM at the nominated price.
If they refuse to exercise those rights, then Neometals can offer the shares to third parties.
“Neometals understands that GFL late yesterday issued an announcement convening a meeting to seek the approval of its shareholders to exercise its pre‐emptive right, although GFL has not yet formally advised Neometals whether or not it will exercise its right,” Neometals said in its ASX announcement.
“Unless either or both shareholders exercise their rights, or failing which Neometals enters into a binding sale agreement with a third party following compliance with the pre‐emptive rights regime, there can be no certainty that the sale of Neometals’ shares in RIM will proceed.
“Neometals will advise the market of any material developments.”