Rare earth partnership for Neo Material Technologies
Neo Material Technologies (TSX: T.NEM, Stock Forum) announced Tuesday that it has signed a memorandum of understanding with Japan’s Mitsubishi Corporation, establishing a strategic partnership between the companies for the identification, development and commercialization of rare earth resource opportunities outside of China.
Under the agreement, Mitsubishi will fund up to US$2.5 million costs associated with Neo's development of the heavy rare earth resource at the Pitinga tin mine in Brazil owned and operated by Mineracao Taboca.
Neo, which is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials also says it will “use its reasonable best efforts” to include Mitsubishi in the commercial phase of the Pitinga project with Taboca and to allocate a portion of all mixed rare earth concentrate produced from the mine to Mitsubishi.
Mitsubishi has also committed to a minimum 20% participation in any new rare earth processing plant that Neo decides to build and operate outside of China, and will have the right to purchase no less than 20% of the annual output of separated rare earths from the plant.
"I am extremely pleased to have Mitsubishi, a very strong partner, working with Taboca and Neo on the development and commercialization of the Pitinga rare earth resource", noted Constantine Karayannopoulos, Neo’s president and CEO.
Copyright 2009 Stockhouse
