- Australian Rare Earths (AR3) enters a memorandum of understanding (MoU) with Neo Performance Materials to accelerate the Koppamurra project towards first production
- The company says the project’s mixed rare earth carbonate (MREC) production is the “important first step” towards realising the company’s ambitions
- Under the MoU, the companies acknowledge that they will negotiate a joint development agreement (JDA) setting out key deliverables to accelerate Koppamurra
- Also, it will provide a pathway to negotiate an offtake agreement with the rare earths producer in which Neo may purchase 50 per cent of Koppamurra’s MREC capacity
- Shares in Australian Rare Earths end the day 11.3 per cent in the green to close at 34.5 cents
Australian Rare Earths (AR3) has entered a memorandum of understanding (MoU) with Neo Performance Materials to accelerate the Koppamurra rare earth project towards first production.
The company said mixed rare earth carbonate (MREC) production from Koppamurra is the “important first step” towards realising the company’s ambitions to build a strategically significant, global rare earths business.
Under the MoU, the companies acknowledge that they will negotiate a joint development agreement (JDA) setting out key deliverables to accelerate Koppamurra.
The JDA includes provision by Neo of technical consulting services to AR3 which includes sample testing and collaborating to optimise the project flowsheet to reduce impurities in the MREC to an acceptable level for feed into separation plants.
Further, it provides a pathway to negotiate an offtake agreement in which Neo may purchase 50 per cent of Koppamurra’s MREC capacity from the initial module with a right of first refusal to secure up to 50 per cent of production from a subsequent module.
AR3 Non-Executive Chairman Professor Dudley Kingsnorth said the company is delighted to partner with Neo, which it considers a world-leader in the rare earths industry.
“Koppamurra has the potential to be a significant near-term source of strategically important heavy rare earths as well as neodymium and praseodymium and it is pleasing to see Neo identify the significance of our project,” he said.
To further align Neo’s interest with the success of Koppamurra, the company will issue the producer with approximately 3.5 million unquoted options, exercisable at 48 cents upon execution of the JDA.
Shares in Australian Rare Earths ended the day 11.3 per cent in the green to close at 34.5 cents.