• US$96 million allocated by U.S. Government for offtake from Lynas
• US$110/kg NdPr floor price
• Binding Letter of Intent to facilitate definitive agreement
Lynas Rare Earths Ltd (ASX: LYC, OTCQX: LYSDY, LYSCF) (“Lynas”) is pleased to announce the signing ofa binding Letter of Intent between wholly owned subsidiary Lynas USA LLC and the United StatesDepartment of War (DoW) to finalise a rare earth oxide supply agreement.
Under this arrangement, approximately US$96 million will be allocated by the DoW to the purchase of Lightand Heavy Rare Earth oxide products from Lynas. The floor price for supply of NdPr oxide will beUS$110/kg.
The Letter of Intent establishes a framework to finalise an agreement for the supply of Light and Heavy RareEarth oxides to support U.S. national security and supply chain resilience objectives. The products will besupplied by Lynas to the DoW over a four year period.
This offtake agreement follows the mutual decision to modify the originalagreement between Lynas and theDoW based on significant uncertainty as towhether the construction of the Heavy Rare Earth processingfacility at Seadrift, Texas would proceed.
Lynas and the DoW continue to discuss further supply arrangements including for Heavy Rare Earth oxides.
Commenting on the signing, Amanda Lacaze, CEO and Managing Director of Lynas Rare Earths said:
“Lynas is pleased to sign this binding Letter of Intent with the U.S. Department of War. Through thisagreement, the U.S. Defense Industrial Base will continue to have access to Light and Heavy Rare Earthoxides that are essential for modern manufacturing.
“We thank the U.S. Government for working with Lynas to reach this mutually beneficial arrangement andlook forward to finalising the definitive agreement in due course and continuing our productive engagementwith the U.S. Government.”
Source: lynasrareearths.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein