Neometals' (ASX:NMT) 500,000-euro funding from EIT RawMetals for its 88%-owned vanadium recovery project is "small" but represents a "compelling valuation" and may be "materially positive" once fully funded, Euroz Hartleys said in a Sept. 16 note.

EIT RawMetals, an entity associated with the European Union, has a further option to subscribe for up to 10 million euros in equity.

The project is set to start a formal project financing selection process with Nordic banks, aiming to raise 400 million euros split between 40% equity and 60% debt, the report added.

Euroz Hartleys maintained its speculative buy rating on Neometals, with a AU$0.15 price target.