Ucore, Meteoric sign rare earths offtake MOU

Ucore Rare Metals Inc. [UCU-TSXV, UURAF-OTQX] and Meteoric Resources NL [MEI-ASX] have signed a memorandum of understanding (MOU) that could lead to a rare earth offtake agreement involving Meteoric’s forthcoming Caldeira Rare Earth Ionic Clay Project in Brazil.

The MOU envisages the supply of 3,000 tonnes of total rare earth oxide (TRE0) from the Meteoric project in Minas Gerais to Ucore’s developing Alexandria, Louisiana, U.S.A. rare earth oxide (REO) production facility, (the Louisiana Strategic Metals Complex).

Meteoric is based in Perth, Australia. The TREO identified across the Caldeira Project, represents an enriched heavy REO basket with strongly enriched Magnet REOs- terbium, dysprosium, neodymium, and praseodymium. Caldeira has been identified as one of the world’s lowest-cost sources of rare earths with outstanding financial metrics.

Ucore, based in Halifax, Nova Scotia has rights to a transformational rare earth separation technology, RapidSX. The company is currently undertaking heavy and light rare earth element (REE) separation at demonstration scale at its RapidSX Commercialization and Demonstration Facility in Kingston, Ont. Participants in this project include the U.S. Department of Defense and Canadian Government as Ucore implements its technology transfer plan from demonstration scale to commercial scale at its prospective Louisiana SMC.

Key provisions of the MOU area as follows:

During the term of the MOU, the parties will work toward establishing a binding definitive agreement for the supply of mixed rare earth carbonate (MREC) from Caldeira to the Louisiana SMC.

Once the parties are in production, they envision that UCORE will purchase a minimum quantity of 3,000 tonnes of TREO annually from Caldeira. This could represent over 900 tonnes of NdPr, approximately 6.0 million tonnes of Tb and 24 million tonnes of Dy.

Both parties will support each other in the pursuit of funding and business developments for their respective projects.

Ucore’s initial production of REO in Louisiana is expected to start commissioning by the fourth quarter of 2025 and commence commercial operations in the first half of 2026.

Meteoric expects to obtain a construction permit by the fourth quarter of 2025 and aims to commence MREC production during the second half of 2027.

“Ucore is delighted to have the opportunity to work with Meteoric and its world-class Caldeira Project as we continue to engage with like-minded partners in establishing a Western supply chain made up of diverse global projects,’’ said Ucore Chairman and CEO Pat Ryan. “The proximity of South America, particularly Brazil, to the Port of New Orleans and onto our Alexandria, Louisiana facility is ideally situated as we establish rare earth manufacturing in the Southeast United States, he said.

Ucore shares advanced on the news, rising 1.56% or $0.01 to 65 cents. The shares trade in a 52-week range of 98 cents and 56 cents.