09:29 AM EDT, 06/24/2025 (MT Newswires) -- Cymat Technologies ( CYMHF ) on Tuesday said it will buy from Rio Tinto Alcan technology and knowhow for the manufacture of proprietary aluminum metal matrix composites (MMC). Financial terms weren't disclosed.

The deal will also facilitate the transfer of RTA's customers for the product, Cymat ( CYMHF ) said. MMC is a ceramic particle-infused aluminum used in the automotive and rail industries for light weight components requiring extreme wear-resistance. Rito Tinto Alcan, which has been manufacturing and selling its proprietary MMCs for more than 40 years, is exiting the business due to a strategic reorganization.

Cymat ( CYMHF ) said it plans to establish MMC production capability within its existing Mississauga plant.

Cymat ( CYMHF ) estimated that it could generate incremental annual revenue of $7.5 million to $10 million by acquiring the technology. Capital costs for equipment are projected at $2 million to $2.5 million, it added.

Technology and knowhow transfer expenses, while yet to be finalized, are anticipated to be in the low to mid six-figure range., Cymat ( CYMHF ) said. The company plans to finance the acquisition through a combination of existing outstanding warrant proceeds and equipment financing sources.

"This is a highly unique opportunity for Cymat ( CYMHF ) to leverage our existing facilities and unique skill sets to realize a major expansion of our business," said Michael Liik, Cymat's ( CYMHF ) CEO and chairman. "This initiative combined with anticipated sales growth in the nuclear and military verticals in our SAF business should accelerate our path to substantial profitability."