Hudson Resources and Neo Performance Materials Sign Agreement on the Sarfartoq Rare Earth Element Project in Greenland
August 22, 2022 at 07:07 am EDT
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Hudson Resources Inc. and Neo Performance Materials Inc. announce that the parties have executed a binding agreement whereby Neo will acquire from Hudson an exploration license covering the Sarfartoq Carbonatite Complex in southwest Greenland. The Project hosts a mineral deposit that is 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 just 60 kilometers from the international airport in Kangerlussuaq, the Project is close to tidewater and a major port facility and is directly adjacent to some of the best hydroelectric potential in Greenland. Neo, through a special purpose entity ("SPE"), plans to explore and develop the Sarfartoq Project to further 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 pursuing plans to break ground on a greenfield rare earth permanent magnet manufacturing plant in Estonia that 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. Neo and the SPE expect to conduct additional exploratory drilling and other work to move the Project forward to eventual commercial operation. Neo also intends to enter into an offtake agreement with the SPE
with rights to purchase 60% of the ore or mineral concentrate produced from the Project.
Neo Performance Materials Inc. is a Canada-based company that provides advanced industrial materials, rare earth magnetic powders and magnets, specialty chemicals, metals, and alloys. The Company's business segments include Magnequench, Chemicals and Oxides (C&O) and Rare Metals (RM). The Magnequench segment production of permanent magnetic powders used in bonded and hot-deformed, fully dense neodymium-iron-boron (NdFeB or neo) magnets. The C&O segment manufactures and distributes a broad range of advanced industrial materials. The RM segment sources, reclaims, produces, refines, and markets specialty metals and their compounds. These products include both high-temperature metals (tantalum, niobium, hafnium and rhenium) and electronic metals (gallium and indium). These powders and bonded permanent magnets are used in motors, which are used in various automotive applications for hybrid, electric and internal combustion engine vehicles, and micro motors for household applications.
NEO PERFORMANCE MATERIALS INC. 
