Neo Performance Materials Inc. completed the acquisition of an exploration license in southwest Greenland from Hudson Resources Inc..
April 23, 2023
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Neo Performance Materials Inc. (TSX:NEO) executed a binding agreement to acquire an exploration license in southwest Greenland from Hudson Resources Inc. (TSXV:HUD) for $3.5 million on August 22, 2022. Under the terms of agreement, Hudson receives a nonrefundable initial cash payment of $0.25 million upon signing of the agreement and Hudson will receive an additional $3.25 million upon closing of the transaction. Post completion of the acquisition, Neo will 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. 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, then Hudson will receive 5% of the fully diluted equity interests in the SPE immediately prior to the IPO. Completion of the transaction is subject to various conditions, including approval from the Government of Greenland which is expected to take approximately six months, and customary regulatory approvals by the TSX Venture Exchange on the part of Hudson.
Neo Performance Materials Inc. (TSX:NEO) completed the acquisition of an exploration license in southwest Greenland from Hudson Resources Inc. (TSXV:HUD) on April 24, 2023. The transaction has been approved by the Government of Greenland.
Neo Performance Materials Inc. is a Canada-based company that provides advanced industrial materials, rare earth magnetic powders and magnets, specialty chemicals, metals, and alloys. The Company's business segments include Magnequench, Chemicals and Oxides (C&O) and Rare Metals (RM). The Magnequench segment production of permanent magnetic powders used in bonded and hot-deformed, fully dense neodymium-iron-boron (NdFeB or neo) magnets. The C&O segment manufactures and distributes a broad range of advanced industrial materials. The RM segment sources, reclaims, produces, refines, and markets specialty metals and their compounds. These products include both high-temperature metals (tantalum, niobium, hafnium and rhenium) and electronic metals (gallium and indium). These powders and bonded permanent magnets are used in motors, which are used in various automotive applications for hybrid, electric and internal combustion engine vehicles, and micro motors for household applications.