31 May 2021
Vital Metals Limited (ASX: VML) (“Vital Metals” or “the Company”) is pleased to announce it has received formal acceptance of its rare earth carbonate sample from offtake partner REEtec AS (“REEtec”), a Norwegian-based rare earth separation company.
Vital Metals’ Managing Director Geoff Atkins said, “Customer acceptance from REEtec is a key milestone for the development of the Nechalacho rare earth project and the construction of our Extraction Plant in Saskatoon. This achievement demonstrates that we have our processes at Nechalacho working correctly and we can proceed in line with our plans. With the satisfaction of this milestone, the procurement of equipment for our Rare Earth Extraction Plant in Saskatoon will proceed. ”
Vital Metals produced a 12kg rare earth carbonate sample at its Nechalacho project in Canada for REEtec in March 2021 after the Company executed a definitive Offtake Agreement with REEtec on 2 February 2021 and announced material terms of an agreement with REEtec in December 2020. Following the completion of initial analysis of the material and basic laboratory testing, REEtec have confirmed that the material’s purity is well within the agreed upon initial specification and that basic testing of chemical and physical compatibility with REEtec’s process is as predicted.
Product acceptance from REEtec is an important milestone in Vital Metal’s plans to become Canada’s first rare earths producer and the second in North America, with production on track to commence via ore sorting in June 2021.
Under the definitive Offtake Agreement, Vital Metals will provide REEtec with mixed rare earth carbonate product containing an annual volume of 1,000 tonnes REO (ex-cerium) over five years. Both parties have an option to increase this offtake volume by up to 5,000 tonnes REO per annum over 10 years (subject to a corresponding supply agreement).
Contract mining has commenced at Nechalacho, with the first blast at the high-grade North T Zone on 9 May 2021.