22 September 2020
Highlights
• Vital Metals and Saskatchewan Research Council (SRC) have signed a binding Term Sheet to negotiate definitive agreements for the construction and operation of a Rare Earth Extraction
Plant to produce a mixed rare earth carbonate product
• In August 2020, the Government of Saskatchewan and the Saskatchewan Research Council (SRC) announced a C$31 million funding package for the construction of Canada’s first Rare
Earth Processing and Separating Facility in Saskatoon, Canada
• Vital’s Rare Earth Extraction Plant is planned to be located adjacent to SRC’s Separation Plant which will convert mixed rare earth carbonate to commercial grade separated rare earth oxides
• SRC’s facility will require mixed rare earth carbonate product for separation making Vital a likely customer
• Capital cost estimate of the Rare Earth Extraction Plant is A$5.25M
• Subject to execution of definitive agreements, processing operations are scheduled to commence in Quarter 3, 2021
• Off-take negotiations are progressing well with a number of non-China buyers
Vital Metals Limited is pleased to announce the signing of a binding Term Sheet between Vital’s 100% owned subsidiary Cheetah Resources (“Cheetah”) and Saskatchewan Research Council (“SRC”) which sets out parameters for the design, procurement, construction, commissioning and operation of a Rare Earth Extraction Plant (“Term Sheet”). It is intended that Cheetah’s Rare Earth Extraction Plant will produce a mixed rare earth carbonate product and will be located adjacent to SRC’s recently announced Rare Earth Processing Facility which will produce separated rare earth oxides. SRC’s Separation Plant will be a potential customer of Cheetah's mixed rare earth carbonate product.
Investors are cautioned that even though the Term Sheet is binding, there is no guarantee that the Definitive Agreements (defined below) will be entered into.
Commenting, Vital Metals’ Managing Director Geoff Atkins said: “The signing of this Term Sheet with SRC marks an important milestone for Vital and the development of the Nechalacho Project. Whilst the Definitive Agreements continue to be finalised in line with the Term Sheet, the Company is excited about the prospect of the construction and operation of a rare earth demonstration extraction plant, as well as it being co-located with SRC’s recently announced rare earth separation plant. Being the only rare earth project in Canada with near term production capability, co-located with Canada’s only Separation Facility, provides Vital the opportunity to be a cornerstone of the North America Critical Minerals Strategy.”
SRC Rare Earth Processing Facility
On Thursday, 27th August 2020, the Government of Saskatchewan and SRC announced C$31 million in funding for the construction of a Rare Earth Processing Facility in Saskatchewan, Canada, the first of its kind in Canada. The facility will include the construction and operation of a Rare Earth Separation Plant, which will convert mixed rare earth carbonate feedstock into commercial grade separated rare earth oxides.
The plant is expected to be fully operational in late 2022 with construction anticipated to commence in Quarter 4 2021.