Australia's Meteoric Resources to supply rare earths oxide to Canada's Ucore
Adds details in paragraphs 2-3, CEO quote in paragraph 4; share moves in paragraph 5; background in paragraph 6
Aug 21 (Reuters) -Rare earths developer Meteoric Resources MEI.AX said it has executed an agreement to supply 3,000 metric tons of rare-earth oxide from its forthcoming Caldeira rare earth ionic clay project in Brazil to Canada's Ucore Rare Metals UCU.V.
Under the agreement, the parties will work towards a binding agreement for the supply of mixed rare earth carbonate (MREC) to Ucore's developing rare earth oxide production facility, the Louisiana Strategic Metals Complex in the United States, Meteoric Resources said on Wednesday.
The Perth-headquartered firm said it also expects to obtain a construction permit by the fourth quarter of 2025, and aims to commence MREC production during the second half of 2027.
"Ucore's interest signals strong external market confidence in the Caldeira Project's ability to progress to a final investment decision and into production," Meteoric CEO Nick Holthouse said.
Shares of Meteoric were down as much as 4% to A$0.096 by 0033 GMT, amid weakness across the sector.
The agreement follows Meteoric collaborating with a regional department of Brazil's Minas Gerais state in late June to explore the production of rare earths magnets.
Reporting by Shivangi Lahiri in Bengaluru; Editing by Rashmi Aich
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