* Cos agree to manufacture, supply rare earth products
* Neo to buy mixed rare earth carbonates from Molycorp
June 8 Neo Material Technologies Inc NEM.TO,
a maker of magnetic powders and materials, said it signed a
letter of intent with a unit of Molycorp Inc to manufacture,
supply and distribute rare earth products.
Under the deal, Neo Materials will purchase mixed rare
earth carbonates as well as neodymium and praseodymium oxides
or metals from Molycorp Minerals LLC, Neo said.
Molycorp is developing one of the biggest rare earth
deposits in the world at its mine in California's Mojave Desert
and is also looking to raise about $350 million in an initial
The deal includes a potential marketing and distribution
arrangement under which Neo will market various Molycorp
products and provide Molycorp with technical assistance and
know-how with respect to production of rare earth metals,
alloys and magnets.
Shares of Neo Materials, which have lost about six percent
over last three months, closed at C$3.86 Monday on the Toronto
(Reporting by Ashutosh Joshi in Bangalore; Editing by