Neometals has secured a binding mining services agreement with BML Ventures for development of the Ironclad gold deposit at its Barrambie Gold Project in Western Australia. The definitive agreement, executed on 13 April 2026, represents a significant milestone for the company by providing a funded pathway to gold production without requiring Neometals to commit substantial capital to mine development and operations.
The structure of the arrangement is noteworthy for investors seeking to understand Neometals’ risk profile. Rather than proceeding as operator, Neometals’ subsidiary Avanti will engage BML Ventures as an independent contractor under a mining services and profit-share model. Critically, BML Ventures will fund and manage all development and mining activities, including operating costs, third-party expenses, and statutory requirements, with costs recoverable on a non-recourse basis from project revenues. This arrangement effectively transfers execution risk to an experienced mining services provider while allowing Neometals to retain 100 percent ownership of the mining lease application area.
The economics appear balanced for both parties. Production profits will be shared 50-50 between Neometals and BML Ventures once mining commences, meaning the company stands to benefit from gold production without bearing upfront development capital. BML Ventures brings relevant credentials to the venture, including proven open-pit gold development expertise, an owner-operator mining fleet, and established toll-milling relationships that are essential for project execution. The updated Ironclad Mineral Resource Estimate and completed Scoping Study, developed alongside BML Ventures, provide the technical foundation for a near-term production strategy.
Several factors support the project’s viability from a technical perspective. The Ironclad deposit features free milling, near-surface mineralisation suitable for conventional open-cut mining and processing routes. This geological characteristic reduces technical complexity compared to deposits requiring more specialised extraction methods. The metallurgical work completed to date, described as positive sighter test results, indicates the ore can be processed through standard gravity and flotation methods, lowering both capital and operational complexity.
The agreement remains subject to conditions precedent, most notably the execution of an acceptable ore tolling agreement with a third-party mill. Securing toll-milling arrangements is a critical path item, as demonstrated by BML Ventures’ emphasis on established relationships in this space. The initial development phase will involve grade control drilling and updated mining studies within an approved budget, with costs payable at agreed rates and any material scope variations or overspends borne by BML Ventures.
Investors should monitor progress on the tolling agreement negotiations and permitting timelines, particularly native title negotiations and heritage survey outcomes. The achievement of first gold production and the realisation of the 50-50 profit split will ultimately determine the arrangement’s success and Neometals’ ability to transition from exploration to production company. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Neometals Ltd (ASX: NMT)
Neometals Ltd is an Australia-based battery materials producer that develops and commercializes sustainable processing solutions for recycling and recovering critical materials from waste streams, including lithium-ion battery recycling and vanadium extraction from steelmaking by-products. The company operates through three segments: Lithium, Titanium/Vanadium, and Other, with operations and projects located in Australia, including the Barrambie Gold project in Western Australia and partnerships with companies like Mercedes-Benz for battery recycling technology. Founded in 2001 and headquartered in West Perth, Australia, the company focuses on supporting the global transition to circular supply chains and cleaner energy through its proprietary green processing technologies.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
