Maaden inks binding term sheet to build rare earth refinery in Saudi Arabia

Maaden says the binding term sheet is valid until March 31, 2027, unless the parties agree otherwise

Saudi Arabian Mining Co. (Maaden) entered into a binding term sheet with MP Materials Corp. and Mountain JV, LLC.

The agreement, signed today, Nov. 19, outlined certain advisory and technical services, as well as the formation of a joint venture (JV) to establish, develop, and construct a rare earth element (REE) refining and separation facility in Saudi Arabia (the “Processing Facility”), according to a statement to Tadawul.

Subject to standard preconditions (including, but not limited to, obtaining all required corporate and regulatory approvals), the binding term sheet mandates that the parties negotiate in good faith and execute the following arrangements (or proposed transactions):

1. Advisory agreement: MP Materials will provide Maaden with support to prepare a bankable feasibility study for the Jabal Sayid mine project.

2. Technical services agreement: MP Materials will assist Maaden with preparing a bankable feasibility study for the Processing Facility.

3. Shareholders’ agreement: Maaden and Mountain JV, LLC (in which MP Materials will hold an equity interest) will form a JV to fund, develop, and build the Processing Facility in Saudi Arabia. Maaden is set to hold a minimum 51% ownership stake, with Mountain JV, LLC holding a maximum 49%. Maaden will also serve as the facility's operator.

Unless the parties agree otherwise, the binding term sheet is valid until March 31, 2027.

The execution of this binding term sheet, which involved no related parties, entails no financial impact. However, the financial impact of the proposed transactions will be determined in the final agreements.