Noah Zivitz

Managing Editor, BNN Bloomberg

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Neo Performance Materials Inc. is striking while the iron is hot.

The Toronto-based processor of rare metals and industrial magnet producer announced Friday afternoon it's raising $67.5 million in a bought-deal sale of 4.5 million common shares priced at $15.00 a piece.  

The financing was secured the same day Neo's shares surged as much as 15 per cent after some movement in its investor base. Earlier Friday, Hastings Technology Metals Ltd. of Australia said it scooped up a 22.1 per cent stake in the company by acquiring almost nine million Neo shares from Oaktree Capital Management L.P. for $135 million. That transaction was also done at a price of $15.00 per share, according to the release.

Hastings was backed on the investment by Wyloo Metals, which agreed to purchase A$150 million ($135 million) of new exchangeable notes. Wyloo is a familiar name to the Canadian mining scene, after it beat out BHP in a bidding war for Noront Resources Ltd.

"Rare earths and the permanent magnets they produce are essential enablers of the energy transition. ... This transaction spans the value chain, from mining to magnet manufacturing, and fits well with our strategy of investing in the stable and secure supply of critical minerals," said Wyloo Chief Executive Luca Giacovazzi in an early-morning release.

Neo said proceeds from its financing — which is being led by Paradigm Capital Inc. — will be used for potential global growth opportunities, among other general corporate purposes.