08:10 AM EDT, 05/01/2024 (MT Newswires) -- Neo Performance Materials ( NOPMF ) , which lost 3.2% yesterday, on Wednesday said it has entered into a non-binding memorandum of understanding with Meteoric Resources.

Neo's rare earth separation facility in Estonia is expected to purchase 3,000 metric tonnes (MT) of total rare earth oxide (TREO) annually from Meteoric's Caldeira Project's initial production, and holds a right of first refusal to purchase additional material when the Caldeira Project produces more than 6,000 MT TREO per year. The offtake agreement is expected to extend until Neo has purchased 30,000 MT TREO, with a customary renewal provision for subsequent terms.

Meteoric expects to obtain a construction permit from the Brazilian authorities by Q4 2025 and aims to start mixed rare earth carbonate production during the second half of 2027.

In a separate statement, Neo said Jeff Hogan, an executive vice president, will retire on September 30. Mohamad El-Mahmoud, currently the executive vice president, rare metals at Neo will take over Hogan's responsibilities for chemicals & oxides.