Cadence Minerals Plc (LON:KDNC) has told investors that Hastings Technology Metals Ltd - its joint venture partner in the Yangibana Neodymium Project in Western Australia – has signed a second Memorandum of Understanding (MOU) for an off-take deal with China Rare Earth Holdings Limited (CREH).
Under the MOU, the parties have outlined their intent to enter into a binding commercial agreement for the sale by Hastings and purchase by CREH of Mixed Rare Earth Carbonate (MREC) which will be produced from Yangibana.
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Cadence said the final terms and conditions of the agreement will be formalised in a commercial off-take contract within 12 months from the date of the MOU.
It added that pricing for the MREC will be based on a formula taking into account prevailing market prices prior to shipment.
Cadence acquired a 30% free carried interest to Bankable Feasibility Study of the Yangibana North Rare Earth Deposit in December 2011, with the exploration costs borne solely by Hastings, the project’s 70% owner and operator.