21 May 2021
Vital Metals Limited (ASX: VML) (“Vital Metals” or “the Company”) is pleased to announce it has signed a lease for its rare earth extraction plant in Saskatoon, Canada, where it will process material from its Nechalacho rare earths project in Northwest Territories.
Vital Metals is set to commence rare earth production via concentrate sorting at Nechalacho next month, with contract mining underway at Nechalacho’s North T zone.
An initial 10-year lease agreement between Vital Metals’ subsidiary Cheetah Resources Saskatchewan Corp and Northstar Innovative Developments Inc. (“Northstar”) will see Vital Metals’ extraction plant located adjacent to Saskatchewan Research Council’s (SRC) rare earth separation facility, creating a rare earth processing hub in Saskatoon. Northstar also owns the land where SRC is developing its project.
Vital Metals’ Managing Director Geoff Atkins said first product from Nechalacho was scheduled for delivery to the separation plant in Saskatoon in November 2021.
“Signing a lease for this site is another exciting step forward for Vital in its development as a rare earths producer, as this extraction plant will allow us to produce a mixed rare earth carbonate product for sale to separation facilities, such as the one in development by SRC,” he said.
“Engineering and procurement activities have progressed, and with the lease and building design now finalised, the procurement of these key packages will proceed, targeting the first feed by the end of 2021. First product from the Nechalacho site is scheduled to be delivered to Saskatoon in November 2021.”
Mr Atkins said Vital Metals’ site for the extraction plant adjacent to SRC’s planned rare earth separation plant made sense.
“Our facility will be located within SRC’s rare earth precinct which has the potential to provide us with several advantages including the opportunity for SRC to be a potential customer of our rare earth carbonate product,” he said.
“In signing this lease, we will also receive a new build which meets our exact requirements, without the need for compromise.”
The Government of Saskatchewan announced C$31 million in funding for SRC’s rare earth processing facility in August 2020. It will be the first-of-its-kind in Canada and will begin to establish a fully commercial Rare Earth Element (REE) technology hub in Saskatchewan, forming an industry model for future commercial REE initiatives and supply chain development.