other material
confidence high
sentiment positive
materiality 0.65
REalloys signs 15-year rare earth offtake deal with Critical Metals for 15% of Tanbreez Phase 1
REALLOYS INC.
- 15% of monthly Phase 1 production (up to 15,000 mt/yr) from Tanbreez Project; initial term 15 years from first commercial delivery.
- Pricing formula: market-referenced with floor price annual escalation of 2%; payable percentages NdPr 75%, Dy 80%, Tb 80%, Y 35%; recovery >85%.
- Supply start must occur within 5 years, else either party may terminate; REalloys handles ocean transport and import clearance.
- Offtaker shortfall penalty: average Product Price times volume plus mitigation costs minus resale proceeds; interest at SOFR + 3% on late payments.
- Complements existing supply partnerships (Hoidas Lake, Sheep Creek, etc.); targets commercial production January 2027 ahead of U.S. federal rare earth restrictions.