Key points
- Neometals Ltd received a waiver from ASX Listing Rule 10.1.
- Waiver allows granting security over assets for a $2 million loan from CHPL.
- CHPL is controlled by Neometals' former Chairman and current CEO's father.
- Loan intended for funding working capital and specific project activities.
- Waiver conditions include disclosure of terms and annual reporting.
Full summary
Neometals Ltd has been granted a waiver from ASX Listing Rule 10.1, allowing the company to grant a security interest over its assets to Coal Holdings Pty Ltd (CHPL) for a $2 million loan facility. CHPL is controlled by Neometals' former Chairman and current CEO's father, David Reed. The loan is intended to support Neometals' working capital requirements and specific near-term activities, including funding for the Barrambie Ironclad pre-FID activities, diamond drilling, and essential working capital. The waiver conditions require Neometals to disclose the terms of the loan and security, provide reasons for choosing CHPL as a lender, and ensure the security is limited to the loan amount and discharged upon repayment. Any variations to the loan or security terms must be approved by Neometals' shareholders.