TORONTO, May 27 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) (the "Company" or "Neo") announced today that it has acquired 50% of the issued and outstanding shares plus voting control of Buss & Buss Spezialmetalle GmbH ("Buss & Buss").
Buss & Buss is a German limited liability company located in Sagard, Germany that specializes in the recycling and recovery of rare metals. Through a well developed commercial network in North America, Europe, Russia, Kazakhstan and other countries, Buss & Buss' main business is the recycling of rhenium from super alloy parts and scrap. It also recovers and upgrades other minor metals such as tantalum. Rhenium is a strategic material of critical importance to the commercial and military aerospace industries. It greatly enhances the high temperature strength and structural properties of super alloys used primarily in turbine hot section blades and surface coatings, resulting in increased fuel efficiency and lower green house gas emissions. Rhenium, in the form of ammonium perrhenate, is also an indispensable ingredient of reforming catalysts used in the production of high-octane gasoline.
Under the terms of the share purchase agreement, Neo paid an undisclosed cash amount of which a portion was paid into an escrow account to be held for a period of one year from the date of closing and released subject to certain terms and conditions. The articles of association for Buss & Buss were also amended to grant Neo one additional vote on all Buss & Buss shareholder resolutions. Together with the purchased shares, Neo owns a majority of the voting rights attached to all of the issued and outstanding shares of Buss & Buss. Neo may acquire the balance of the shares of Buss & Buss in certain circumstances.
"The combination of Neo's existing rhenium operation with Buss & Buss will result in the largest capacity and capability for recycling rhenium from super alloys in the world" said Constantine Karayannopoulos, President and CEO. "Together we have the technology and capacity to recycle a wide range of rhenium containing super alloys and produce high purity ammonium perrhenate and rhenium metal. We look forward to working with our new partners at Buss & Buss and continuing to expand our rare metals business."
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, and other rare metals and their compounds through its Magnequench and 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's rare metals products are primarily used in the wireless, LED, flat panel, solar and catalyst industries. Neo is headquartered in Toronto, Canada.
SOURCE Neo Material Technologies Inc.
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