Neo Performance, Hudson Resources Green Lit for Greenland Rare Earth Exploration License Sale

By Adriano Marchese

Industrial materials manufacturer Neo Performance Materials Inc. said it got approval from the government of Greenland to receive the transfer of a rare earth exploration license from mining explorer Hudson Resources Inc.

The two Canadian companies said in a joint statement on Monday that the approval allows them to complete the purchase of a license covering a portion of the Sarfartoq Carbonatite Complex in the southwest region of Canada.

As part of the deal, Neo Performance will pay Hudson Resources $3.5 million for the property, and the property will transfer to a special-purpose entity, Neo North Star Resources Inc., established to fund the Sarfartoq Carbonatite project.

The companies said Neo North Star has also entered into an offtake agreement to sell up to 60% of its ore or mineral concentrate from the Sarfartoq Carbonatite project to Estonia-based rare earth metals processor NPM Silmet OU.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

04-24-23 0735ET