Meteoric Resources Strikes Offtake MoU with Neo Performance Materials

THE BOURSE WHISPERER: Meteoric Resources (ASX: MEI) announced the inking of a non-binding Memorandum of Understanding (MoU) with TSX-listed Neo Performance Materials Inc.

Meteoric Resources struck the MoU for offtake of 3,000 metric tonnes of total rare earth oxide (TREO) per year from the company’s Caldeira project in Minas Gerais, Brazil, to supply Neo’s magnet manufacturing plant.

The MoU provides the framework for the parties to negotiate a binding commercial offtake agreement for the supply of mixed rare earth carbonate (MREC) from the Caldeira project.

Under the terms of the MoU Neo will ultimately be expected to enter into a binding offtake agreement for annual purchases of MREC containing 3,000 million tonnes TREO from Caldeira.

The length of the offtake agreement is expected to extend until Neo has purchased a total of 30,000 million tonnes TREO, with a customary renewal provision for subsequent terms.

“We are very pleased to be bringing this important agreement with Neo to market,” Meteoric Resources CEO Nick Holthouse said in the company’s ASX announcement.

“This represents Meteoric’s first step in our staged offtake strategy, and are delighted to support Neo in their aim to provide high-performance magnetics for automotive, factory automation, high-efficiency motors, residential appliances, and many other industries.

“Connecting and integrating into the developing alternate rare earth materials supply chain signals strong external market confidence in the Caldeira project’s ability to progress to an FID and into production.

“We look forward to working with NEO and having the benefit of their technical support as we continue to pursue and develop our own downstream capabilities and progress to a binding commercial arrangement.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE