Jul 21, 2009 - Neo Material Technologies Signs Agreement with Mitsubishi Corporation for the Development of the Pitinga Rare Earth Resource
Mitsubishi agrees to participate in Neo's quest for rare earths outside of China
TORONTO, July 21 / - Neo Material Technologies Inc. (TSX: NEM) (the
"Company" or "Neo") announced today that it has signed a Memorandum of
Understanding ("MoU") with Mitsubishi Corporation ("Mitsubishi"). This MoU
represents the establishment of a strategic partnership between Neo and
Mitsubishi for the identification, development and commercialization of rare
earth resource opportunities outside of China.
Under the terms of the agreement, Mitsubishi will fund up to US$2.5
million of all costs associated with Neo's development of the heavy rare earth
resource at the Pitinga tin mine in Brazil owned and operated by Mineracao
Taboca ("Taboca"). As part of the agreement, Neo is also committed to use its
reasonable best efforts to include Mitsubishi's participation in the
commercial phase of the Pitinga project with Taboca and to allocate a portion
of all mixed rare earth concentrate produced from Pitinga to Mitsubishi for
its own use.
In the event that Neo decides to construct and operate a rare earth
processing plant anywhere outside the People's Republic of China, Mitsubishi
has committed to a minimum participation of 20 percent in such new facilities.
In return, Mitsubishi will have the right to purchase no less than 20 percent
of the annual output of separated rare earths from such plants.
In addition to Neo's Pitinga project, Mitsubishi and Neo will continue to
collaborate on the identification and development of rare earth resources
around the world, which fit their criteria of by-product economics and heavy
rare earth mineralization.
"I am extremely pleased to have Mitsubishi, a very strong partner,
working with Taboca and Neo on the development and commercialization of the
Pitinga rare earth resource", noted Constantine Karayannopoulos, President and
CEO. "Mitsubishi Corporation shares the same vision as Neo for the long-term
robust demand for high value rare earths, and, particularly the importance of
securing a long-term global supply of such materials for the further
development and growth of electric and hybrid/electric vehicles and other key
environmentally-friendly applications."
Founded in 1950, Mitsubishi Corporation is Japan's largest general
trading company with over 200 bases of operations in approximately 80
countries worldwide. Together with its over 500 group companies, Mitsubishi
employs a multinational workforce of approximately 60,000 people, and has long
been engaged in business with customers around the world in virtually every
industry, including energy, metals, machinery, chemicals, food and general
merchandise.
"In April 2009, we formed the Corporate Development division under the
leadership of Mr. Yorihiko Kojima, President and CEO of Mitsubishi
Corporation, to focus on the development of rare earth-based components for
our target applications and markets such as electric vehicles," noted Mr.
Hiroshi Imagawa, Senior Vice President of Mitsubishi Corporation's
Automotive-Related Business Unit. "We are excited to work with Neo to develop
and secure reliable sources of heavy rare earth materials, in order to meet a
global increase in demand that we expect will be driven by the greater
proliferation of electric vehicles in the future."
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications through its Magnequench and AMR
Performance Materials business divisions. These innovative products are
essential in many of today's high technology products. Magnequench's Neo
powders are used to produce bonded magnets, generally used in micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.
Source: Neo Material Technologies, Inc.
Apr 16, 2009 - Neo Material Technologies Signs Development Agreement for Brazilian Rare Earth Deposit
TORONTO, April 15 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company" or "Neo") announced today that it has signed an agreement with
Mineracao Taboca S.A. ("Taboca"), the Brazilian-based tin mining and
processing subsidiary of Minsur S.A., the Peruvian privately owned mining
company.
Under the terms of the agreement, Neo will have exclusive access for two
years to Taboca's Pitinga tin mine located in the State of Amazonas, Brazil
for the purpose of investigating the potential to commercially produce a heavy
rare earth concentrate. Pitinga produces primarily a tin (cassiterite)
concentrate as well as a niobium/tantalum (columbite/tantalite) ferro alloy.
Based upon work done to date by Taboca and Neo, the tailings that have been
produced and accumulated at the mine as well as the yet-to-be-mined resource,
appear to contain attractive quantities, concentrations and distribution of
heavy rare earths. In addition to a sampling program throughout the resource,
the project will aim to determine the optimal process to produce a commercial
rare earth concentrate, suitable for further processing by standard rare earth
separation/purification plants. The sampling and drilling operations will
provide material for an extensive ore beneficiation and hydrometallurgical
testing program.
Early indications are that appreciable and possibly commercially
attractive concentrations of heavy rare earths in the form of xenotime, and
possibly other mineral forms, exist in the tailings and/or the reserves.
Xenotime is a heavy mineral, consisting of predominantly yttrium phosphate but
also containing other heavy rare earths. Heavy rare earths typically command
higher prices than light rare earth elements, and are in higher demand, in
applications such as energy efficient lighting, display panels, electronic
ceramic chips, and high performance magnets for hybrid electric vehicle
motors. In addition, as part of the agreement, Taboca has granted Neo a right
of first refusal for the commercialization of the Pitinga rare earths.
"This development is in line with our strategy to diversify our access to
key raw materials and meets a number of Neo's criteria and objectives in our
search to secure additional sources of rare earths. In addition to its current
products, Pitinga could also incrementally produce concentrates of heavy rare
earths on a by-product basis. One of the exciting aspects of what we have
identified so far is that this resource is unusually rich in dysprosium and
terbium, two very important, rare and high value heavy rare earth elements."
noted Constantine Karayannopoulos, President and CEO. "We look forward to
working closely with Taboca in continuing our joint efforts to commercialize
the Pitinga rare earths resource."
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders ("Neo Powders"), rare earths and
zirconium based engineered materials and applications through its Magnequench
and AMR Performance Materials business divisions. These innovative products
are essential in many of today's high technology products. Magnequench's Neo
Powders are used in the production of bonded magnets for micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.
Nov 05, 2008 - Neo Material Technologies Enters Cooperative Agreement
With Minmetal Rare Earth (Ganzhou) Company
TORONTO, Nov. 4 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) ("Neo"
or the "Company") announced today that the Company's 90% owned Chinese joint
venture Jiangyin Jia Hua Advanced Material Resources Co., Ltd ("JAMR") has
entered into an agreement to provide distribution, management and various
technical services to Minmetal Rare Earth (Ganzhou) Co., Ltd ("MREG"). MREG is
a newly formed company led by China Minmetals Corporation ("Minmetals") which
is consolidating the separation capacity of Ding Nan Da Hua Advanced Material
Resources Co., Ltd ("DAMR") and Ganxian Hong Jin Rare Earth Co Ltd. in Jiangxi
Province.
Under the terms of the agreement, JAMR will continue to act as
distributor for products manufactured by DAMR, now a part of MREG, and
continue to provide DAMR with management and various technical services for an
initial term of five (5) years for the distribution of product and
three (3) years for management and technical services subject to annual
renewal thereafter. This arrangement enables JAMR to play an active role
within the consolidated group, with access to additional separation capacity
and raw materials. As part of the agreement, JAMR's investment in DAMR of
approximately 66 million Renminbi will be repaid during the fourth quarter of
2008.
"Minmetals is a leader in the global mining and minerals industry. We
look forward to working closely with them in their efforts to consolidate
heavy rare earth mining and separation capacity as well as develop downstream
applications in Jiangxi Province. Establishing such a partnership in China has
been a key objective for Neo. MREG's ability to access raw materials, combined
with our expertise and track record of developing advanced rare earths and
global markets will mutually benefit Neo and Minmetals in servicing the
increasing demand for high quality rare earth elements," stated Constantine
Karayannopoulos, President and Chief Executive Officer.
Sep 11, 2007 - Neo Material Technologies Provides Update on Warrants
TORONTO, Sept. 8 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Corporation") reported today that 17,581,800 of the Corporation's warrants
(the "Warrants") were exercised on or before the expiry date of September 2,
2008 representing 99% of the total Warrants outstanding. There were 17,733,600
Warrants issued on August 31, 2005 which were exercisable into common shares
at $2.50 per share. At the close of business on September 8, 2008, there were
118,794,314 common shares outstanding and the potential for another 3,191,703
common shares related to options bringing the total to 121,986,017 common
shares on a fully diluted basis. The aggregate total proceeds from the exercise of the Warrants was
approximately Cdn$44 million, a portion of which will be used to retire the
long term debt of the Corporation by no later than September 30, 2008.
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications through its Magnequench and AMR
Performance Materials business divisions. These innovative products are
essential in many of today's high technology products. Magnequench's neo
powders are used to produce bonded magnets, generally used in micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.
Aug 10, 2007 - Neo Material Tech. announces exclusive licensing agreement reached with Hitachi Metals Magnequench patent protection effectively extended to July, 2014
TORONTO, Aug. 10 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") announced today that agreement has been reached with Hitachi
Metals, Ltd.("Hitachi") on an exclusive field of use license, covering
isotropic Rare Earth/Neodymium-Iron-Boron powders ("Nd-Fe-B" or "Neo Powders")
by Hitachi to NEM of Hitachi's US Patent 5,645,651 ("651"). With the merger of
Hitachi with NEOMAX Co., Ltd as of April 1, 2007, Hitachi became the successor
to the NEOMAX patent portfolio covering Nd-Fe-B magnets.
The "651" patent is a basic patent covering the composition and key
properties of matter for Nd-Fe-B which extends to July 2014. The validity and
enforceability of this patent were upheld in a US International Trade
Commission proceeding, in which Sumitomo Special Metals (predecessor of
NEOMAX) and Magnequench (a division of NEM) jointly obtained a general
exclusion order prohibiting the importation into the United States of products
covered by six of their respective patents, including "651".
Magnequench and Hitachi have been cross-licensed under their respective
patents since 1988 with Hitachi having domain in the sintered Nd-Fe-B magnet
market and Magnequench in Neo Powders for bonded Nd-Fe-B magnets. The
exclusive license announced today provides Magnequench with the ability to
continue its current successful patent infringement and testing programs
through to the expiration of the "651" patent in July 2014.
"This agreement with Hitachi further enhances our intellectual property
and technological lead in the Neo powders market and allows us to continue to
aggressively pursue growth through our longer term new applications strategy."
noted Constantine Karayannopoulos, President & CEO. "I am very pleased to
welcome Hitachi as an important shareholder. Hitachi is one of the foremost
producers and innovators in the magnet industry, with a leading position in
magnets for hybrid car motors. We look forward to a continued collaboration
with Hitachi, from the supply of rare earths to the development of new
applications, for the benefit of both companies."
Magnequench will pay Hitachi a total of US$16,120,000 as follows:
US$12,620,000 in cash, of which US$1,120,000 is payable on closing with the
balance payable through to July 2014. In addition, the Company will issue to
Hitachi 798,837 common shares, issued at a price of Cdn$4.60 per common share,
equivalent to US$3.5 million in the aggregate, subject to the approval of the
Toronto Stock Exchange. Hitachi has retained the right to manufacture and sell
certain lower rare earth content magnetic powders, subject to specific volume
and other application restrictions.
Hitachi is one of the largest and most advanced Japanese producers of
sintered Nd-Fe-B and ferrite magnets. Hitachi also produces bonded magnets
using Magnequench Neo Powders and is a large consumer of rare earths.
July 16, 2007 - Neo Material Technologies Inc. announces $74 million "bought deal" financing
TORONTO, July 16 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") is pleased to announce that it has entered into an agreement with a
syndicate of underwriters, led by GMP Securities L.P. and including Clarus
Securities Inc., Cormark Securities Inc., Paradigm Capital Inc. and Raymond
James Ltd., that have agreed to purchase on a bought deal basis 16,000,000
Common Shares of the Company at a purchase price of $4.60 per Common Share,
for aggregate gross proceeds of approximately $73,600,000. The underwriters
will also have an option, exercisable for a period of 30 days following the
closing date, to purchase up to an additional 1,600,000 Common Shares at the
purchase price to cover over-allotments, if any. The Company intends to use
the net proceeds for the early retirement of its US$50,000,000 convertible
debenture at a negotiated total repurchase price of US$95,000,000.
The debenture was put in place August 2005 as part of the merger
transaction between AMR Technologies Inc. and Magnequench, Inc. The debenture
carries a 10% coupon and is convertible at $2.50 per share, representing, at
current exchange rates, an issuance of approximately 21,000,000 shares. The
Company's ability to eliminate the conversion of 21,000,000 shares, and
$5,000,000 in annual interest expense through the issuance of 16,000,000
shares and the use of a new debt facility bearing interest at a rate below
10 percent makes this an accretive transaction for all shareholders.
"Neo Material's ability to complete this transaction at $4.60 per share
demonstrates the strength of its financial and operational performance since
merging AMR and Magnequench in 2005." noted Constantine Karayannopoulos,
President and CEO. "We have made significant strides to improve Neo's balance
sheet and the completion of this accretive transaction further positions Neo
to enter the next phase of its growth strategy."
The Common Shares to be issued under this offering will be offered by way
of a short form prospectus in all of the provinces in Canada and in the United
States on a private placement basis pursuant to an exemption from the
registration requirements of the United States Securities Act of 1933, as
amended.
The offering is scheduled to close on or about August 2, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock Exchange
and the securities regulatory authorities.
May 10, 2007 - Neo Material Technologies reports first quarter 2007 financial results
-> Revenues increase to US$50.0 million
-> EBITDA at US$13.3 million
-> Net income and EPS at US$6.4 million and US$0.06 per share (fully diluted)
TORONTO, May 10 - Neo Material Technologies Inc. (TSX: NEM) (the
"Company") today reported its financial results for the three-month period
ending March 31, 2007. Unless otherwise specified, all currency amounts are
expressed as U.S. dollars.
For the three-month period ended March 31, 2007, the Company reported
increased revenues of $50.0 million and net income of $6.4 million, or $0.06
per share on a fully diluted basis. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") during the quarter amounted to
$13.3 million. This compares to first quarter 2006 sales of $37.9 million and
net income, EBITDA and earnings per share of $5.3 million, $12.7 million and
$0.06 per share, respectively.
At March 31, 2007, the Company had $7.8 million in cash and cash
equivalents. Long term debt was $64.1 million as at March 31, 2007, compared
to $69.5 million at December 31, 2006.
Volumes sold at both the Magnequench and AMR Performance Materials
divisions remained strong reaching near record levels during what has
typically been a seasonally slow period. Magnequench shipped 1,032 tonnes,
representing a 10.4 percent year-over-year increase, while AMR Performance
Materials shipped 1,704 tonnes, a 14.0 percent increase from the tonnage
shipped in the same three-month period in 2006. Growth from "New Applications"
at Magnequench continued to be strong with shipments increasing while the
"Base Business" followed its anticipated seasonal pattern with lower demand in
the fourth and first quarters.
The Company experienced a reduction in consolidated gross profit margins
due to proportionally higher revenues resulting from the AMR Performance
Materials division's distribution agreement with DAMR and raw material cost
increases experienced in 2006 which are now impacting the margins of both
Magnequench and the AMR Performance Materials divisions.
About Neo Materials
Neo Material Technologies is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications through its Magnequench and AMR
Performance Materials business divisions. These innovative products are
essential in many of today's high technology products. Magnequench's neo
powders are used to produce bonded magnets, which are used in micro motors,
precision motors, sensors and other applications requiring high levels of
magnetic strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers, television
display panels, optical lenses, mobile phones and electronic chips. The
Company is headquartered in Toronto, Canada and has approximately 1,300
employees in 15 locations, across 10 countries.
