The Project is expected to have a very small environmental footprint, is located close to excellent infrastructure, and features a highly enriched rare earth mineralization in elements required for permanent magnets
Investment represents a key step in Neo’s Magnets-to-Mine vertical integration strategy and its plans to expand into rare earth permanent magnet manufacturing in
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
Neo, through a special purpose entity (“SPE”), plans to explore and develop the
Neo is also pursuing plans to break ground on a greenfield rare earth permanent magnet manufacturing plant in
Completion of the sale of the license (the "Transaction”) is subject to various conditions, including approval from the Government of
Neo intends to assign its rights under the Agreement to an SPE controlled by Neo that would hold the License and continue exploration and ultimately extraction of the rare earth elements on the Project.
The key terms of the Agreement are as follows:
- Hudson receives a nonrefundable initial cash payment of
US$250,000 upon signing of the Agreement. - Upon receipt of approval from the
Greenland government, Hudson will transfer the License to Neo or the SPE. - Hudson will receive an additional
US$3,250,000 upon closing of the transaction. - If within five years from the date of closing of the transaction (1) the SPE transfers the License, or there is a change in control of the SPE pursuant to an acquisition or merger, then Hudson will receive 5% of the total consideration received by the SPE in connection with such transfer, or (2) the SPE conducts an initial public offering on a stock exchange (“IPO”), then Hudson will receive 5% of the fully diluted equity interests in the SPE immediately prior to the IPO.
The License covers the large Sarfartoq carbonatite complex that hosts Hudson’s ST1 REE project and the Nukittooq Niobium-Tantalum project. The
Three kilometers east of the
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.
Closing of the transaction is subject to customary regulatory approvals by the TSX-V and the
QUALIFIED PERSONS
The scientific and technical information in this news release has been reviewed and approved for disclosure by Dr.
ON BEHALF OF THE BOARD OF DIRECTORS OF HUDSON RESOURCES
“Jim Cambon”
President and Director
ON BEHALF OF THE BOARD OF DIRECTORS OF NEO PERFORMANCE MATERIALS
“Constantine Karayannopoulos”
President and Chief Executive Officer
For More Information:
HUDSON RESOURCES:
President
604-628-5002
Email: jcambon@hudsonresourcesinc.com
NEO PERFORMANCE MATERIALS:
SVP,
416-962-3300
Email: a.mahdavi@neomaterials.com
Director, Corporate Communications
303-503-6203
Email: j.sims@neomaterials.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
Neither the
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. In particular, this news release contains forward-looking information pertaining to the following: the likelihood of completion of the Transaction, the ability to obtain the necessary regulatory authority and government approvals in connection with the transfer of the License, the anticipated timing of the transfer of the License, Neo’s anticipated plans to develop the Project to diversify its global sourcing of rare earth ore and expand its supply chain; Neo’s anticipated plans to break ground on a greenfield rare earth permanent magnet manufacturing plant in
In making the forward-looking information in this release, each of Hudson and Neo has applied certain factors and assumptions that are based on the parties’ current beliefs as well as assumptions made by and information currently available to Hudson and Neo, as applicable. Although each party considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. Such factors include, among others: the inability to obtain the necessary regulatory and governmental approvals in connection with the transfer of the License in accordance with the terms or timeline announced or at all; the occurrence of a material adverse change, disaster, change of law or other failure to satisfy the conditions to closing of the Transaction; the inability of the Neo to transfer the License to the SPE or enter into an offtake agreement with the SPE; the ability of Neo and Hudson, as applicable, to achieve its corporate objectives or otherwise advance the progress of the Project; the ability of Neo to achieve its anticipated business plans, including diversifying its global sourcing of rare earth ore and expanding its supply chain; uncertainties relating to the availability and costs of financing needed in the future; delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry; risks related to the international operations; the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; the parties’ inability to obtain any necessary permits, consents or authorizations required for its activities; inability to fulfill the duty to accommodate indigenous peoples; an inability to predict and counteract the effects of COVID-19 on the business of the parties, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; general market and industry conditions; and those risks set out in the public documents of Neo and Hudson filed on SEDAR.
Readers are cautioned not to place undue reliance on forward-looking information. Each of Hudson and Neo does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
Source:
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