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Neo Announces Agreement to Sell Majority Equity Interest of China Rare Earth Separation Assets for USD $30 Million in Cash

Newswire.ca - Tue Aug 20, 4:50AM CDT

TORONTO, Aug. 20, 2024 /CNW/ - Neo Performance Materials Inc. ("Neo" or the "Company") (TSX: NEO) announced today that it has entered into agreements (the "Transactions") to sell (i) 86% equity interest in Jiangyin Jiahua Advanced Material Resources Co., Ltd. ("JAMR") to Shenghe Resources Holding Co., Ltd ("Shenghe") for approximately USD $25.6 million cash; and (ii) 100% of the equity in Zibo Jiahua Advanced Material Resources Co., Ltd. ("ZAMR") to Shenghe for approximately USD $4.1 million cash. JAMR sales proceeds represent a 10.7x multiple on average trailing five-year EBITDA for the facility. The ZAMR facility was valued using an asset-based approach, as the facility was closed in the second quarter of 2024.

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