Neometals (ASX:NMT) announced the execution of a project agreement providing additional funding and services to Novana, in which it holds an indirect stake of 87.1% through Recycling Industries Scandinavia, according to a Friday Australian bourse filing.
Novana is commercializing Neometals' vanadium recovery process through the development of the Finnish vanadium recovery project, the filing.
Recycling Industries executed a project agreement with EIT RawMaterials to provide a second tranche of funding to support the development of the project.
Under the agreement, EIT RawMaterials will provide Novana with a second capital injection of 494,000 euros in grant funding and in turn, be issued an additional 1.1% stake in Recycling Industries at a pre-money valuation of 50 million euros. This will bring its stake in the firm to 2.2%.
The firm's shares rose over 8% on market close on Friday.
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