Canadian rare earth miners who have recently signed off-take agreements and memorandums of understanding are beginning to see increasing interest in their projects. In the future, all parts of the vertically integrated "rare earth-to-magnet" total supply chain in Europe and the United States are being implemented.
Announced last week that Search Minerals Inc. (TSX code: SMY | OTCQB: SHCMF) ("Search") has signed a non-binding memorandum of understanding with American Rare Earth Co., Ltd. for future deliveries containing 500 The tpa of "magnet" rare earth product neodymium/praseodymium (NdPr). 500 tons/year of NdPr will come from Search’s future production at the Deep Fox or Foxtrot deposit in Labrador, Canada.
Just a week ago, Australia’s Vital Metals Limited (ASX: VML) announced a similar off-take agreement to sign a similar deal with Ucore Rare Metals Inc. from the future production of Vital’s Nechalacho mine in Northwestern Canada. The latter dealt with the Norwegian rare earth metal/alloy start-up REEtec, which followed Vital’s acquisition, which you can read here.
Search Minerals Inc. Memorandum of Understanding for the acquisition of rare earth concentrates from the United States
"This memorandum of understanding is part of the development plan for Search and USA Rare Earth to expand their cooperation, including discussions on the separation, marketing, and offtake of part of the future production of Deep Fox and Foxtrot. These discussions are in line with Search's development of a key material supply chain in North America. The ambitions of important contributors and the U.S. rare earth mine-to-magnet production strategy, as well as the development of a complete and sustainable North American rare earth supply chain."
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Search Minerals and U.S. Rare Earth further cooperate
USA Rare Earth supports Search's efforts because it helps it occupy a place in the entire North American supply chain. Once put into operation, the initial goal of the NdFeB magnet plant of the American Rare Earth Company is to produce 2,000 tons of high-performance NdFeB rare earth magnets per year, and has the ability to further expand the production scale in accordance with the growing market demand.
Search Minerals Inc. is an emerging rare earth miner with three properties in Labrador, Canada. These three are:
Search Minerals' resources include permanent magnet rare earth elements (neodymium, praseodymium, dysprosium and terbium). Search is currently working to advance the testing of its proprietary direct extraction process, which was developed by the renowned rare earth processing expert (UBC) Professor David Dreisinger. The company is also advancing resource upgrades and preliminary economic assessment ("PEA") work, which has been fully funded.
Search aims to build strategic partnerships by leveraging Foxtrot PEA (and the soon merged Deep Fox and Foxtrot PEA), using its proprietary low-cost hydrometallurgical process, and continuing to explore its highly accessible regional scale opportunities as a basis for establishing strategic partnerships And additional offtake agreements. The purpose is to promote early monetization and more quickly delineate additional resources to strengthen the company's position as a reliable, strategically located, low-cost producer.
The next steps in the search include:
Demand for rare earth magnets is expected to surge
Search Minerals now has resources, proprietary extraction process, separation memorandum of understanding and offtake memorandum of understanding
Source: Search Minerals Company Introduction
Search Minerals continues to take positive steps towards the start of production, although it is still in its early stages. Search has realized a resource, a PEA, a proprietary extraction technology, a separation technology MOU, and now it is an offtake MOU (not yet a binding agreement). The recent memorandum of understanding signed with U.S. Rare Earths on mining products is a strong support for Search Minerals' Port Hope Simpson project, especially the Deep Fox and Foxtrot deposits.
The market value of Search Minerals is $66 million. Given that it is now heading in the right direction at a good speed, it deserves close attention.
Matthew Bohlsen is a senior editor at InvestorIntel.com. Holds a graduate diploma in applied finance and investment, and a graduate diploma in financial planning. He... <Read more about Matthew Bolson>
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Searches like Vital and Appia seem to be in the lead in the competition for the few renewable energy CAD mine producers that may emerge in the next few years. However, my question is over now that the frequently cited USA RE intends to create a mine-to-magnet chain. From the perspective of US renewable energy, does the current focus seem to be attracting all their attention? Their SPAC seems to have retreated behind the scenes, so does this mean that, as this search might suggest, U.S. Reinsurance intends to leave mining and processing to other entities that are already more advanced in these areas? As usual, whenever an informative article appears, it always raises further questions.
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