TORONTO, April 4, 2025 /CNW/ - Neo Performance Materials Inc. ("Neo" or the "Company") (TSX: NEO) has signed a non-binding memorandum of understanding (the "MOU") with Globe Metals & Mining Ltd. ("Globe") (ASX: GBE) for the offtake of up to 150 metric tonnes per year (MTPY) of niobium pentoxide from the Kanyika Niobium Project in Malawi (the "KanyikaProject").
Neo Performance Materials logo (CNW Group/Neo Performance Materials, Inc.)
Key Highlights
The MOU provides the framework for the parties to negotiate a binding commercial offtake agreement for the supply of niobium pentoxide from Globe's Kanyika Project in Malawi.
Under the contemplated offtake agreement, NPM Silmet OÜ ("Silmet"), Neo's rare metals production facility in Sillamäe, Estonia, is expected to purchase 150 MTPY of high-purity niobium pentoxide in Phase1 of the Kanyika Project, which is targeted to start production in Q1 2027.
Following the fulfillment of the initial purchase amounts, it is anticipated that the offtake agreement will be renewed annually.
Neo also has a limited right of first refusal to purchase other critical metals, such as tantalum and zircon concentrates, produced at the Kanyika Project.
Globe's CEO, Paul Smith, said: "The Neo MOU represents a watershed moment for the Kanyika Project. It means Globe has now signed multiple MOUs and a letter of intent that, as a package, cover offtake for 100% of Kanyika's Phase 1 production of both Niobium Pentoxide and Tantalum Pentoxide. We look forward to a long and lasting relationship with Neo and are very pleased to be associated with such a highly regarded group, which enjoys a pre-eminent position in the global market for strategic and critical metals."
Neo's CEO, Rahim Suleman, said: "We are laser-focused on diversifying and de-risking our supply chain, including our long term access to critical metals, and expanding into increasingly more downstream value-added applications across all our business lines, including niobium and tantalum. The feedstock agreement with Globe provides an opportunity to engage in multi-year planning to optimize Neo's supply chain."
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.
Globe is an African-focused resources company with its Kanyika Niobium Project in Malawi. The Kanyika Niobium Project will produce niobium and tantalum products, which are key additives in high strength low-alloy (HSLA) steels and electronics. A JORC Mineral Resource Estimate indicates that Kanyika could support a mine life of over 23 years. Globe's corporate head office in Perth, Australia, is supported by regional operational offices in Lilongwe. Globe has been listed on the ASX since December 2005 (ASX: GBE).
This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, the negotiation and drafting of a definitive offtake agreement and the terms and conditions of such agreement and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release is subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. There are many risk factors associated with the negotiation and drafting of a definitive offtake agreement and the terms and conditions of such agreement. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of the Transaction, including the risks of a material adverse change to the Company's assets or revenues, or risks of unknown liabilities that may arise.
Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. For more information on Neo, investors should review Neo's continuous disclosure filings that are available under Neo's profile at www.sedarplus.ca.
