Neometals strikes lithium deal with Metals X

Neometals (ASX: NMT) has struck a deal with Metals X to expand Neometals' Mt Marion lithium project in WA.

Under the binding MoU, Neometals will lease the lithium mining rights over a portion of Metals X's Hampton Area Location 53 Project, which adjoins Mt Marion. Neometals also proposes to acquire an adjoining mining lease and infrastructure from Metals X.

Metals X will retain the gold rights on the tenements in the agreement.
   
The deal has been struck through Neometals' 70%-owned subsidiary Reed Industrial Minerals, which is 30%-owned by Mineral Resources.

Neometals said the deal would enable it to explore and develop extensions of its lithium deposits, which are located on the Mt Marion-Hampton Area boundary. It said drilling showed the orebody remained open, suggesting the lithium continued across the boundary.

Metals X will be paid  a royalty of $2 a tonne of ore mined and 1.5% of the gross sales value of any concentrate produced.  Metals X will also receive $90,000 a year in rent and a one-off payment of $250,000 for the infrastructure package.


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