Neometals’ Vanadium Recovery Project (VRP1) in Pori, Finland has received a conditional grant worth €48.7 million ($56.56 million) from Business Finland.
The grant, which will support the development of the project, is contingent on the company securing the remainder of the equity and debt financing necessary for the VRP1 project.
Neometals holds an 86.1% stake in Recycling Industries Scandinavia (RISAB), and is the sole owner of Novana, the entity responsible for the development of VRP1.
Previously, the company announced that the VRP1 feasibility study demonstrated the potential of vanadium pentoxide(V).2Hey5) Production with the lowest quarterly operating costs, along with a low to negative carbon footprint.
Novana is currently involved in the project financing selection process, with the aim of raising approximately €400 million in total funding.
Nordic Bank Skandinaviska Enskilda Banken manages the debt component, while EIT RawMaterials manages the equity package.
The conditional grant from Business Finland is expected to reduce the capital financing required for the project.
Novana holds the exclusive license for Neometals’ VRP technology within the Nordic region as well as a non-exclusive license for territories outside the region.
Novana is required to pay Neometals 2.5% of gross revenues from all products and sales generated from the use of this technology.
The project benefits from a long-term lease for the proposed VRP1 station site, an secured environmental permit and… Binding clearance agreement 100% of VRP1’s V2Hey5 Products with Glencore International.
Neometals stated that it does not intend to provide any additional material financing to RISAB or Novana for the development of VRP1 and expects its existing ownership interest to be diluted to a minority equity position.
“We would like to congratulate the Novana team and thank Business Finland and the Finnish government for their continued support of the project,” said Chris Read, Managing Director of Neometals.
“Vanadium is on the list of critical minerals in the EU, USA and Australia, and this grant plays an important role in reducing the capital required to finance the project, which aims to produce vanadium with a carbon-neutral footprint in the Nordic countries from an industrial side stream.”
“Neometals secures conditional award for VRP1 in Pori, Finland” was originally created and published by Mining technologywhich is a trademark of GlobalData.
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