Vital Metals executes term sheet for first offtake with Norwegian REE separation company, REEtec

21 December 2020

HIGHLIGHTS 

  • Binding term sheet signed with REEtec for a base of 1,000 tonnes REO (ex-Cerium) per annum for a period of 5 years
  • REEtec has developed a proprietary and sustainable process for the manufacture of rare earth elements
  • REEtec was founded by Scatec Innovation, a serial entrepreneur in renewable energy and advanced materials
  • The term sheet includes an option to increase offtake volumes up to 5,000 tonnes REO (ex-Cerium) per annum for a 10-year long-term supply agreement
Media release, December 21, 2020
Vital Metals Limited is pleased to announce that it has entered into a binding term sheet that sets out the in-principle terms for an offtake and profit-sharing agreement in respect of raw material from the Nechalacho mine between the Company and REEtec AS (“REEtec”).
The key terms of the agreement are set out in further detail below and are subject to execution of a definitive agreement on or before 31 January 2021 (unless extended) ("Definitive Agreement").
REEtec is a Norwegian company that has developed a completely new and potentially game changing process for the separation of high purity rare earth elements ("REE") ("REEtec Products"). The patent pending technology has been proven through the successful operation of an industrial scale demonstration plant at the Herøya Industrial Park close to Porsgrunn, Norway. The process combines high efficiency and a competitive cost structure with best in class environmental friendliness. REEtec reutilises virtually all consumables in the production process. The energy demand is very low and electricity consumption is 100% based on hydro-electric sources.
REEtec was founded by Scatec Innovation. Over a period of more than thirty years, Scatec Innovation has taken a leading role in the industrialization of several ground-breaking technologies in renewable energy and advanced materials. Scatec Innovation holds significant ownership positions in both private and public companies.

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