Key Highlights
Meteoric Resources’ CEO, Nick Holthouse, said:
“We are very pleased to be bringing this important agreement with Neo to market. 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.”
Neo Performance Materials’ CEO, Rahim Suleman, said:
“We are laser focused on laying the groundwork for rare earth supply by securing offtake from diverse projects around the world. We are excited to add the Caldeira project to our growing pipeline of prospective sources of rare earth feedstock which could enable us to increase capacity utilization at Silmet and supply the needs of our sintered rare earth magnet plant in Europe when it comes online. The Caldeira Project is one of a group of key MOUs and agreements we have signed in securing feedstock. This provides our customers with maximum supply chain optionality.”
Offtake Agreement
The MOU outlines the general terms on which Neo is expected to, subject to final negotiations and customary conditions, enter into a binding offtake agreement for annual purchases of MREC containing 3,000 MT TREO from Meteoric’s Caldeira Project. The term of the offtake agreement is expected to extend until Neo has purchased a total of 30,000 MT TREO, with a customary renewal provision for subsequent terms.
The MOU also contemplates a right of first refusal for Neo to purchase additional MREC that Meteoric produces from the Caldeira Project in excess of 6,000 MT TREO per year, on similar terms.
The precise pricing mechanisms underpinning the offtake agreement, which is expected to be based on standard terms and conditions for such supply, remain subject to final negotiation of the binding offtake agreement.
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