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Non-binding Memorandum of Understanding signed by Australian Rare Earths Limited (ASX:AR3) and international rare earths producer Neo Performance Materials Inc. (TSX:NEO)

Highlights

• MOU provides for good faith negotiation of a joint development agreement between AR3 and Neo, setting out the key deliverables that will accelerate the development of Koppamurra through to production of a mixed rare earth carbonate product
• MOU provides for good faith negotiation of an offtake agreement pursuant to which Neo may purchase 50% of Koppamurra’s MREC capacity from the initial module, with a right of first refusal to secure up to 50% of production from a subsequent module
• AR3 and Neo to collaborate to identify and develop future clay-hosted rare earth projects in Australia and New Zealand, with AR3 to receive a first right of refusal to participate in such projects, and Neo to receive a first right of refusal on any offtake from developed projects 
• On execution of the joint development agreement, AR3 to issue Neo 3,500,667 unlisted options exercisable at A$0.48, expiring three years from the date of issue, serving to further align Neo with the success of AR3 and the Koppamurra Project

up off lows , to 36c