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Search Minerals and USA Rare Earth Enter Non-Binding Memorandum of Understanding for an Offtake Agreement
VANCOUVER, British Columbia, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF) (“Search” or the “Company”) and USA Rare Earth, L
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 20, 2021 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF) (“Search” or the “Company”) and USA Rare Earth, LLC (“USA Rare Earth”) are pleased to announce that Search Minerals Inc. and USA Rare Earth, LLC have signed a non-binding Memorandum of Understanding (“MOU”) for an offtake of 500 tonnes/year of Neodymium (Nd) / Praseodymium (Pr) from future production at the Deep Fox or Foxtrot deposits. The parties will continue to conduct customary, commercially reasonable due diligence in advance of entering into any definitive agreements. In addition, USA Rare Earth exercised 4,500,000 warrants as part of the Accelerated Warrant program as announced in the Company’s press release dated August 18, 2021. Each warrant was exercisable into one common share at a price of $0.10, and as announced in the Company’s press release dated August 18, 2021, the Company had accelerated the expiry date of the warrants to September 30, 2021. This MOU is part of Search’s and USA Rare Earth’s development plans to expand the collaboration to include discussions regarding separation, marketing and offtake of a portion of the future production at Deep Fox and Foxtrot. These discussions are in line with Search’s ambition to be an important contributor to the development of a North American Critical Material supply chain and USA Rare Earth’s strategy of Mine-to-Magnet processing and the development of a complete and sustainable North American rare earth supply chain. On November 10, 2020 Search and USA Rare Earth jointly announced a Technical Collaboration Framework Agreement whereby the two companies would work on several initiatives. Greg Andrews, President/CEO of Search, stated: “We have already started a strong technical collaboration with USA Rare Earth and are pleased to deepen our relationship through this MOU and the exercise of warrants by USA Rare Earth. Search will continue our “Sprint to Production” which includes: 1) producing the Q1 2022 Preliminary Economic Assessment Report on the combined Deep Fox and Foxtrot deposits, 2) continued environmental baseline studies, and 3) processing the 80 tonne bulk sample material for our magnetic demonstration plant testing.” Simon Sullivan, Chief Commercial Officer of USA Rare Earth, said, “We are excited to continue our collaboration with Search as...