Geomega to Recycle Rare Earths from USA Rare Earth’s Anticipated Neo Magnet Production in the United States

MONTREAL, July 16, 2020 (GLOBE NEWSWIRE) -- Geomega Resources Inc. (“Geomega” or the “Corporation”) (TSX:V.GMA) (OTC: GOMRF), a rare earth clean technologies developer for mining and recycling, and USA Rare Earth, LLC, the funding and development partner of the Round Top Heavy Rare Earth and Critical Minerals Project in West Texas, are pleased to announce that they have entered into a Letter of Intent (LOI) to recycle rare earth-containing production waste from USA Rare Earth’s future production of sintered neodymium iron boron (NdFeB) permanent magnets (sintered neo magnets) in the United States.

As part of its mine-to-magnets strategy, earlier this year USA Rare Earth purchased the sintered neo magnet manufacturing equipment formerly owned and operated in North Carolina by Hitachi Metals America, Ltd. USA Rare Earth is currently evaluating options for the location of the plant, which will become the first neo magnet manufacturing plant in North America since the Hitachi facility ceased operations in 2015. Other domestic sources of neo magnets either import magnets for assembly in the US or import sintered neo magnet blocks that are machined and assembled in the US.

The plant was designed to produce in excess of 2,000 tonnes of sintered neo magnets per year, or approximately 17% of current U.S. demand for neo magnets. The process of manufacturing and machining neo magnet blocks generates up to 30% swarf and scrap (up to 600 tonnes), which needs to be recycled. Material from USA Rare Earth’s facility and material from machining of other blocks will be the feed for Geomega’s recycling plant located in St-Bruno, Quebec which, after processing, could become one of the rare earth oxide feed required for USA Rare Earth’s magnet plant. USA Rare Earth is expected to make all its swarf and scrap available for Geomega to recycle for a minimum period of five (5) years, commencing on the effective date of a definitive agreement between the companies.

“With more than 60% of the materials coming out of our Round Top deposit being used in clean tech, green tech and renewable energy applications, we see recycling magnet waste as a natural way to be economically efficient and environmentally responsible,” said Pini Althaus, CEO of USA Rare Earth. “Geomega’s process to recycle waste and bring it back into our magnet feedstock reconfirms our readiness to innovate at every point in our mine-to-magnets strategy. It is also part of our strategy accelerate revenues from our U.S.-based neo magnet production ahead of mine production from the Round Top project.”