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
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
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.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements
relating to such matters as expected financial performance, business
prospects, technological developments, and development activities and like
matters. These statements involve risk and uncertainties, including but not
limited to the risk factors previously described. Actual results could differ
materially from those projected as a result of these risks and should not be
relied upon as a prediction of future events. Neo Material Technologies Inc.
undertakes no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is made, or to
reflect the occurrence of unanticipated events.
For further information:
For further information: Michael Doolan, Chief Financial Officer, (416)
367-8588 ext.335, Website: www.neomaterials.com, e-mail:
email@example.com; Ali Mahdavi, Investor Relations, (416) 962-3300 ext.
225, e-mail: firstname.lastname@example.org