Northern Minerals has revealed the identity of its offtake partner for the Browns Range heavy rare earths project near Hall Creek as Japan's Sumitomo.
Northern Minerals said it had firmed up the memorandum of understanding with the company after initially announcing negotiations in December last year.
"Discussions regarding product specifications, transport and pricing, and the commercial relationship has developed to the point where it is now appropriate to disclose the identity of the MOU partner," the company said in a statement.
The agreement involves the supply of 1500 tonnes per annum of heavy rare earths concentrate product.
Northern Minerals said it expected the memorandum on understanding to be converted to a binding agreement following completion of a feasibility study in the middle of next year.
The company is targeting production in 2016.
Managing director and chief executive George Bauk said the agreement was a great vote of confidence in the Browns Range project and indicated the significant opportunity that the project presented.Northern Minerals shares were up 1.5 cents, or 6.25 per cent, to 25.5 cents at 10am.