Neometals has completed the previously-announced sale of its 13.8% stake in the Mt Marion Lithium Project in Western Australia to its co‐shareholders, Ganfeng Lithium and Mineral Resources (MRL), for A$103.8m ($73.71m).

The companies have executed a binding life‐of‐mine annual offtake agreement for 57,000t per annum (tpa) of Mt Marion 6% spodumene concentrate, in parallel with the sale agreement.

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Neometals executed the sale agreement in December last year to divest its equity interest in the Mt Marion Lithium Project.

Neometals managing director Chris Reed said: “We will continue to take a very measured approach to capital allocation and the timing of investment decisions of multiple advanced projects in our portfolio.

“We are fortunate that despite challenging capital markets we retain significant flexibility and optionality with respect to the timing, quantum and structure of investment into the development of our portfolio of exciting growth projects.”

The company’s offtake agreement for 57,000tpa of spodumene concentrate provides a proven base‐load feed source, which will be used to produce lithium chemicals at better profit margins.

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“We are fortunate that despite challenging capital markets we retain significant flexibility.”

MRL said following the receipt of all relevant approvals, the company’s subsidiary Process Minerals International has now increased its equity interest in Mt Marion from the existing 43.1% to 50%.

The company further added that the acquisition of the additional equity interest is consistent with its strategy of identifying value-adding opportunities in the lithium sector.

Mt Marion sent its first shipment carrying 15,000t of lithium concentrate from Port of Kwinawa to the Zhenjiang Port in China in February 2017.