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.
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.