Neometals has secured a conditional grant of €48.7m from Business Finland for its Vanadium Recovery Project (VRP1) in Pori, Finland. The grant is contingent on Neometals securing the remaining equity and debt financing needed for the project. The VRP1 feasibility study showed potential for vanadium pentoxide production at low operating costs and a minimal carbon footprint.

Neometals’ subsidiary, Novana, is in the process of selecting project financing, aiming to raise around €400m. The debt component is managed by Nordic bank Skandinaviska Enskilda Banken, while EIT RawMaterials is handling the equity package. The grant from Business Finland is expected to reduce the equity financing required for the project.

Novana holds an exclusive license for Neometals’ VRP technology in the Nordic region and a non-exclusive license elsewhere. They are obligated to pay Neometals a 2.5% royalty on gross revenues from products using the technology. The project has a long-term lease for the plant site, an environmental permit, and an offtake agreement with Glencore International for 100% of V2O5 products.

Neometals does not plan to provide additional funding for the project and expects its ownership stake to be diluted. Managing director Chris Reed expressed gratitude for the grant, highlighting the project’s aim to produce vanadium with a zero-carbon footprint in the Nordics. Vanadium is considered a critical mineral in the EU, USA, and Australia.

Read more at Yahoo Finance: Neometals secures conditional grant for VRP1 in Pori, Finland