News: MEI UPDATE 1-Australia's Meteoric signs preliminary deal with Neo Performance to supply rare...

(Updates with more details on supply deal)

May 2 (Reuters) - Australia's Meteoric Resources (MEI) will supply 3,000 metric tonnes of rare earth oxide per year to Toronto-listed Neo Performance Materials NEO.TO under a preliminary agreement, the companies said on Thursday.

Neo's rare earth separation factory in Estonia is expected to purchase the rare earth oxide from the initial output of Meteoric's Caldeira project in Brazil.

Additionally, Neo will have the first right of refusal to buy additional rare earth oxide if the project's annual output exceeds 6,000 metric tonnes.

The exact value of the offtake agreement remains subject to final negotiations between Meteoric and Neo, the companies said in a joint statement.

Meteoric expects to obtain a construction permit for Caldeira by the fourth quarter of 2025 and aims to commence mixed rare earth carbonate production in the second half of 2027.