Neometals re-enters upstream lithium with Utah brine joint venture

Neometals Ltd ( (AU:NMT) ) has shared an announcement.

Neometals has agreed to acquire a 51% stake in Utah Brine Corporation, a special purpose vehicle holding a large lithium and potash brine project in Utah’s Paradox Basin, by funding up to US$2 million in project costs over three years. The deal marks Neometals’ return to upstream critical minerals and provides low-cost exposure to more than 80,000 acres of prospective brine tenure in the Lisbon Valley area.

Utah Brine Corporation has secured an exclusive access and use licence over 24 inactive oil and gas wells, associated leases and infrastructure, enabling brine sampling, technical test work and project evaluation activities. While no mineral resources or reserves have yet been defined and no development decision has been made, the joint venture positions Neometals to leverage its lithium expertise in a strategic U.S. jurisdiction alongside its 49% partner Omaha Value Inc., which will fund a separate payment to the licence holders upon permitting milestones.

The most recent analyst rating on (AU:NMT) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Neometals Ltd stock, see the AU:NMT Stock Forecast page.

More about Neometals Ltd

Neometals Ltd is an Australian critical minerals company with experience across the lithium value chain, including development of the Mt Marion lithium mine in Western Australia and the patented ELi lithium processing technology. The company focuses on upstream and downstream lithium projects and is now seeking to expand its presence in North American brine-hosted lithium and potash opportunities.

Average Trading Volume: 960,281

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$44.69M

For detailed information about NMT stock, go to TipRanks’ Stock Analysis page.