07:57 AM EDT, 04/04/2025 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Friday said it signed a non-binding memorandum of understanding with Globe Metals & Mining for the offtake of up to 150 metric tonnes per year (MTPY) of niobium pentoxide from the Kanyika Niobium Project in Malawi.

The company said NPM Silmet OU, Neo's rare metals production facility in Estonia, is expected to buy 150 MTPY of high-purity niobium pentoxide in Phase 1 of the Kanyika Project, under the contemplated offtake agreement. The Kanyika Project is targeted to start production in the first quarter of 2027.

Following the fulfillment of the initial purchase amounts, Neo Performance expects the offtake agreement to be renewed annually. Neo also has a limited right of first refusal to buy other critical metals, such as tantalum and zircon concentrates, produced at the Kanyika Project.

"The feedstock agreement with Globe provides an opportunity to engage in multi-year planning to optimize Neo's supply chain," said Neo Performance Chief Executive Rahim Suleman.

Shares of the company closed down 5% to $8.39 on Thursday on the Toronto Stock Exchange.