- Neo Performance Materials (TSX:NEO) signed a non-binding memorandum of understanding with Globe Metals & Mining (ASX:GBE) for the offtake of up to 150 metric tons of niobium pentoxide per year from the Kanyika project in Malawi
- The project’s JORC mineral resource estimate delineates 68.3 million tons at 2,830 parts per million (ppm) Nb2O5, 135 ppm Ta2O5 and 80 ppm U3O8
- Neo manufactures advanced industrial materials to expedite the net-zero transition
- Neo Performance Materials stock has added 31.62 per cent year-over-year but only 37.12 per cent since 2020
Neo Performance Materials (TSX:NEO) signed a non-binding memorandum of understanding with Globe Metals & Mining (ASX:GBE) for the offtake of up to 150 metric tons of niobium pentoxide per year from the Kanyika project in Malawi.
Globe’s Kanyika will produce niobium and tantalum beginning in Q1 2027 over an expected 23-year mine life, supplying diversified multi-billion-dollar global markets spanning aerospace, steel, electronics and healthcare. The project’s JORC mineral resource estimate delineates 68.3 million tons at 2,830 parts per million (ppm) Nb2O5, 135 ppm Ta2O5 and 80 ppm U3O8.
Neo would process the metal at NPM Silmet OÜ, its production facility in Sillamäe, Estonia, under its rare metals division, which also includes tantalum products.
The companies will now focus on negotiating a binding annually renewing agreement, which would include Neo’s limited right of first refusal to purchase other critical metals from Kanyika, including tantalum and zircon.
Leadership insights
“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 per cent of Kanyika’s phase 1 production of both niobium pentoxide and tantalum pentoxide,” Paul Smith, Globe Metals & Mining’s chief executive officer (CEO), said in a statement. “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.”
“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,” added Rahim Suleman, Neo Performance Materials’ CEO. “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 advanced industrial materials to expedite the net-zero transition, including magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals and alloys. The company operates manufacturing facilities in China, Germany, Canada, Estonia, Thailand and the United Kingdom.
Neo Performance Materials stock (TSX:NEO) is down by 2.26 per cent trading at C$8.20 per share as of 9:34 am ET. The stock has added 31.62 per cent year-over-year but only 37.12 per cent since 2020.
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(Top image of Neo Performance Materials logo: CNW Group and Neo Performance Materials)
