Dec. 12 (Bloomberg) -- Toyota Tsusho Corp., the trading company of the Asia’s largest automaker, will help accelerate production of rare-earth metals for Canadian mining company Matamec Explorations Inc. and buy all the output from its Kipawa mine.
The memorandum of understanding offers Toyota Tsusho a supply of metals needed for its hybrid and electric vehicles, Montreal-based Matamec said in a statement today. The agreement calls for the two companies to form a joint venture under which Toyota Tsusho would pay about $17.7 million for 49 percent of the mine, based on Bloomberg calculations.
Toyota will buy all of the mine’s output, Andre Gauthier, Matamec’s president, said by phone today.
This is the second time this month an Asian company has sought a rare earths development agreement. On Dec. 4, Korea Resources Corp. led a group of Korean companies in an agreement with Luxembourg-based Frontier Rare Earths to develop its South African mine.
Matamec explores for rare earths, base metals and precious metals. Its shares rose 8.8 percent to 31 Canadian cents at 11:55 a.m. in Toronto. Matamec had fallen 55 percent this year before today.
--Editors: Jessica Resnick-Ault, Tina Davis
To contact the reporter on this story: Sonja Elmquist in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com