In This Article:
Key Objectives:
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Work to establish a binding offtake agreement for the supply of mixed rare earth carbonates from Australia to the USA through enhanced collaboration
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Establish an investment pathway for Ucore into ABx
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Bolster relationships between the United States and Australia as both countries strive to enhance critical minerals and clean energy projects
South Melbourne, Victoria and Halifax, Nova Scotia--(Newsfile Corp. - September 4, 2024) - ABx Group (ASX: ABX) ("ABx") and Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore") are pleased to announce the September 3, 2024, execution of a Memorandum of Understanding ("MOU") that describes the collaborative pathway ABx and Ucore will embark on to advance to:
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a binding offtake agreement for the supply of a mixed rare earth carbonate ("MREC") by ABx to Ucore, and;
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an opportunity for Ucore to invest in the ABx rare earths project in Tasmania.
ABx is an Australian public company headquartered in South Melbourne, Victoria, that has established an ionic adsorption clay rare earth element ("REE") resource in northern Tasmania. The grades of the two key heavy rare earths, dysprosium and terbium, are the highest of any clay-hosted rare earths resource in Australia and comparable to the highest in the world. Metallurgical testing by the Australian Nuclear Science and Technology Organisation ("ANSTO") has confirmed that samples from the resource have the highest ionic proportion of any clay-hosted rare earths resource in Australia.
Ucore is a Canadian public company headquartered in Halifax, Nova Scotia, with a patent-pending rare earth separation technology, RapidSX™. Ucore is currently undertaking heavy and light rare earth element separation at demonstration scale at its RapidSX™ Commercialization and Demonstration Facility ("CDF") in Kingston, Ontario. Participants include the US Department of Defense and the Canadian Government as Ucore implements its technology transfer plan from demonstration scale to commercial scale at its developing Louisiana Strategic Metals Complex ("SMC") in Alexandria, Louisiana, USA.
Key Features of the MOU:
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ABx and Ucore will work toward an arrangement for the preferred annual volume of intermediate rare earth product, which is envisaged to be a MREC, to be supplied by ABx to Ucore.
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The intent is for Ucore to obtain 'first right of refusal' for 50% of ABx annual volume for a minimum period of five years, subject to the agreement of commercial terms.
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The parties will explore potential investment by Ucore into the ABx rare earth project as well as project finance opportunities for the ABx and Ucore projects, which may involve joint approaches to companies active in the rare earth value chain, governments, institutional funds, and private investors.
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ABx and Ucore will collaborate to develop and optimise:
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a comprehensive product flowsheet considering where best to implement collective project efficiencies; and
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a total project development strategy, including laboratory, pilot, and demonstration plant testing.
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ABx and Ucore will share information on global rare earth markets, particularly for the permanent magnet rare earths, with the objective of identifying opportunities for and mitigating risks to the ABx and Ucore projects.