Meteoric Resources and Neo Performance Materials sign MOU for Caldeira Project

Meteoric Resources NL (ASX: $MEI) has entered into a non-binding Memorandum of Understanding (MOU) with Neo Performance Materials Inc. (Neo) (TSX:NEO) for the offtake of 3,000 metric tonnes (MT) total rare earth oxide (TREO) per year from its Caldeira Project in Minas Gerais, Brazil, to supply Neo's magnet manufacturing plant.

Executive Commentary on the Agreement

Meteoric Resources' CEO, Nick Holthouse, expressed, '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.' Neo Performance Materials' CEO, Rahim Suleman, stated, '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.'

Summary of the Offtake Agreement

The MOU between Meteoric Resources and Neo Performance Materials outlines the framework for a binding commercial offtake agreement for the supply of mixed rare earth carbonate from the Caldeira Project. This agreement is expected to supply Neo's magnet manufacturing plant with rare earth oxide, supporting their aim to provide high-performance magnetics for various industries. Meteoric aims to obtain a construction permit by Q4 2025 and commence production during the second half of 2027. The Caldeira Project's location in Minas Gerais, Brazil, a region known for its production of various minerals, adds strategic value to the agreement. Neo's CEO highlighted the importance of securing diverse rare earth feedstock sources to increase capacity utilization and supply their sintered rare earth magnet plant in Europe. The offtake agreement is subject to final negotiations and customary conditions, with the precise pricing mechanisms remaining under discussion.