Neometals Ltd (ASXNMT) non-executive director Jenny Purdie has purchased 44,248 ordinary fully paid shares in on-market trades.
The company is pursuing a downstream integration strategy which involves production of higher-value lithium chemicals and capturing value from end-of-life lithium-ion battery recycling.
READ: Neometals to gain $104 million by divesting Mt Marion Lithium Project interest
Neometals recently divested its 13.8% interest in the Mt Marion Lithium Project in Western Australia, pocketing about $104 million and retaining life-of-mine annual offtake of 57,000 tonnes of spodumene concentrate.
The sale agreement with co-shareholders Ganfeng Lithium Co Ltd and Mineral Resources Limited (ASX:MIN) will enable Neometals to focus on its downstream integration strategy.
It is intended that the Neometals’ proposed lithium chemical refinery will process it future share of Mt Marion concentrates.
The company is also progressing a definitive feasibility study update for its Barrambie vanadium-titanium-magnetite project in WA, which is proposed to be demerged into a new ASX-listed company.
READ: Neometals retains buy recommendation according to research report
Perth-based financial services company Euroz Limited retains its buy recommendation and valued Neometals at 51 cents in a report last November, more than twice its current share price of 22 cents.
Euroz said in the report that its valuation “provides for a mere $50 million nominal value for Barrambie yet there is a clear and substantial upside as the development parameters and timeframe are set-out.
The report notes that as the stock is trading below its 27-cent discounted cashflow valuation of the Mt Marion project, the proposed vanadium demerger will crystallise value for the Barrambie assets.