Under the MoU, the two will collaborate on the facility, which is expected to be operational in 2022. The agreement comes two months after the provincial government confirmed C$31 million in funding for the project.
"The processing facility will have the ability to process rare earth concentrates and to separate rare earths into individual rare earth oxide products using the conventional solvent extraction process," Search Minerals president and CEO Greg Andrews said.
"The ability to demonstrate the separation of rare earths, from our concentrate produced in southeastern Labrador, will position Search as a potential supplier in the Canadian and North American rare earth supply chain."
Search Minerals' focus is to develop REEs zirconium and hafnium resources in the Port Hope Simpson-St. Lewis district in southeast Labrador, Canada. Its infrastructure there includes a 63-kilometre-long road-accessible belt that passes through three local communities.