Neometals secures conditional grant for VRP1 in Pori, Finland

Core Insights - Neometals' Vanadium Recovery Project (VRP1) in Pori, Finland, has received a conditional grant of €48.7 million ($56.56 million) from Business Finland, which is contingent upon securing additional financing [1][2][5] - The feasibility study for VRP1 indicates potential for vanadium pentoxide (V2O5) production at low operating costs and a low-to-negative carbon footprint [2] - Novana, the entity responsible for VRP1, is in the process of raising approximately €400 million in total financing, with debt managed by Skandinaviska Enskilda Banken and equity by EIT RawMaterials [2][3] - The conditional grant is expected to reduce the equity financing required for the project [3] - Novana holds exclusive licensing rights to Neometals' VRP technology in the Nordic region and is obligated to pay a 2.5% royalty on gross revenues from products generated using this technology [3][4] - The project has secured a long-term lease for the plant site, an environmental permit, and a binding offtake agreement for 100% of V2O5 products with Glencore International [4] - Neometals does not plan to provide additional funding to RISAB or Novana, anticipating a dilution of its ownership stake to a minority position [4][5]