Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT) has announced the closing of a A$9 million equity raise which promises to ensure that the battery metal recycler’s flagship business is funded to deliver its current and anticipated future orders.
Specifically, funds raised by Neometals will be used for activities at the Primobius LiB recycling development, a project for Mercedes-Benz.
It will also spend on lithium chemical research development activities, its vanadium and titanium business units, as well as cover corporate and working capital costs.
"We are pleased to close the placement oversubscribed and welcome the support of new domestic institutions and sophisticated investors alike,” said managing director Chris Reed.
“We thank shareholders for their support during the development and commercialisation of our lithium-ion battery recycling technology through our Primobius joint venture with SMS group.
“Neometals is looking forward to Primobius delivering its maiden plant to Mercedes-Benz and growing its revenue base and forward order book for plants supplied under technology licensing business models.
“This raising ensures that our flagship business is funded to deliver its current and anticipated future purchase orders, whilst continuing the commercialisation of our other projects through partnerships and technology licensing."
Some 47.38 million new shares are being issued in the funding, priced at 19 Australian cents each.