- Hudson Resources (HUD) and Neo Performance Materials signed an agreement for the Sarfartoq Rare Earth Element Project
- The project hosts a mineral deposit enriched in neodymium and praseodymium, two essential elements for rare earth permanent magnets used in electric vehicles and more
- Located 60 kilometres from the international airport in Kangerlussuaq, the project is close to tidewater
- Upon receipt of approval from the Greenland government, Hudson will transfer the License to Neo or the SPE
- Hudson will receive an additional US$3,250,000 upon closing the transaction
- Hudson Resources (HUD) is trading at C$0.06 at 12:00 pm EST
Hudson Resources (HUD) and Neo will acquire an exploration license covering the Sarfartoq Carbonatite Complex in southwest Greenland.
The project hosts a mineral deposit enriched in neodymium and praseodymium, two essential elements for rare earth permanent magnets used in electric vehicles, wind turbines, and high-efficiency electric motors and pumps that help reduce greenhouse gas emissions.
Located 60 kilometres from the international airport in Kangerlussuaq, the project is close to tidewater and a major port facility. It is directly adjacent to some of the best hydroelectric potential in Greenland.
Neo plans to explore and develop the Sarfartoq Project further to diversify its global sourcing of rare earth ore and to expand the rare earth supply chains that feed Neo’s rare earth separation facility in Estonia.
That facility was recently awarded a Gold Medal for its sustainable practices by EcoVadis, the well-respected global sustainability auditor.
Neo is also looking to break ground on Estonia’s greenfield rare earth permanent magnet manufacturing plant.
This project is intended to provide European manufacturers with the permanent magnets needed for electric and hybrid vehicles, wind turbines, and energy-saving electric motors and pumps.
The Sarfartoq Project also is a key element of Neo’s “Magnets-to-Mine” vertical integration strategy.
Completion of the license sale is subject to various conditions, including approval from the Government of Greenland for the license transfer.
Neo intends to assign its rights under the Agreement to an SPE controlled by Neo that would hold the License and continue exploration and ultimately extraction of the rare earth elements on the project.
The License covers the large Sarfartoq carbonatite complex that hosts Hudson’s ST1 REEproject and the Nukittooq Niobium-Tantalum project.
The REEs on the property have a high ratio of neodymium and praseodymium at 25 per cent to 40 per cent of Total Rare Earth Oxides.
Jim Cambon, Hudson’s President, added, “As the world faces critical shortages of rare earth elements outside China, we are pleased to help bring the Sarfartoq project closer to commercial reality.”
“This deal provides a significant cash injection to the company and, importantly, also gives Hudson shareholders potential significant upside in the future value of the Sarfartoq projects through equity or additional consideration,” concluded Cambon.
Hudson Resources (HUD) is trading at C$0.06 at 12:00 pm EST.
