Exploration company Meteoric Resources said on Thursday it had entered into a nonbinding memorandum of understanding (MoU) to supply Neo Performance Materials’ Estonia magnet manufacturing with rare earths from its Caldeira project, in Brazil.
Under the contemplated offtake agreement, NPN Silmet, Neo’s rare earth separation facility, will purchase 3 000 t/y of total rare earth oxide (TREO) from Caldeira’s initial production.
Neo will also have the right of first refusal to purchase additional material when the Caldeira project reaches more than 6 000 t/y of TREO.
“This represents Meteoric’s first step in our staged offtake strategy,” said CEO Nick Holthouse.
“Connecting and integrating into the developing alternate rare earth materials supply chain signals strong external market confidence in the Caldeira project’s ability to progress to a formal investment decision and into production,” he added.
Meteoric expects to obtain a construction permit by the fourth quarter of 2025 and aims to start production during the second half of 2027.
TSX-listed Neo Performance CEO Rahim Suleman said the company focused on securing offtake from diverse projects around the world, noting that Caldeira was one of a group of key agreements that it had signed in securing feedstock.