10 August 2021
Vital Metals Limited (ASX: VML) (“VML”, “Vital”, “Vital Metals” or “the Company”) and Quebec Precious Metals Corporation (TSX.V: QPM, OTCQB: CJCFF, FSE: YXEP) (“QPM”) are pleased to announce that they have signed a binding term sheet (the “Term Sheet”) for the acquisition by VML of QPM’s 68% interest in the Kipawa exploration project and 100% interest in the Zeus exploration project (the “Projects”). Joint Venture partner Investissement Québec (“IQ”) holds the remaining 32% of the Kipawa project on a contributing basis.
Kipawa is a heavy rare earths project, located 50km from Temiscaming in Quebec, with a Mineral Resource Estimate of 15.5Mt of eudialyte at 0.434% TREO and 0.873 ZrO2, 6.3Mt of mosandrite at 0.391% TREO, 1.018% ZrO2, 5.1Mt of britholite at 0.286% TREO, 0.944% ZrO2, and with a Proven and Probable Reserve Estimate of 19.8Mt at 0.411% TREO.
Investors should note that the terms “Mineral Resource”, “Mineral Reserve” and, “Proven and Probable Reserve” are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM council. These estimates are foreign estimates and are not reported in accordance with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves (the “JORC Code”). A competent person has not done sufficient work to classify these estimates as a mineral resource or ore reserve in accordance with the JORC Code and it is uncertain that following further exploration or evaluation work that the foreign estimates will be able to be reported as a mineral resource or ore reserve in accordance with the JORC Code.
Vital Metals’ Managing Director Geoff Atkins said: “The acquisition of the Projects provides Vital with a unique opportunity to become a producer of both heavy and light rare earths. Having commenced operations of Canada’s first rare earths mine at our Nechalacho project in Northwest Territories, Canada, the potential to develop the Kipawa project will allow us to produce a full suite of rare earths. It has potential to increase Vital Metals’ position as a strategic player in the North American critical minerals supply chain at a time where demand continues to grow.”
“Part of Vital’s corporate DNA is our ability to identify the most efficient and effective way to develop rare earth projects. Similar to Nechalacho where we have applied an alternative development strategy to greatly reduce capital costs and development timelines, we see similar opportunities for improvements to the existing development strategy at Kipawa and we look forward to defining our development strategy over the coming months.”
“Further, we see the acquisition of this project as an ideal opportunity to cement Vital’s place as a leading rare earths producer not just in North America but globally. The introduction of heavy rare earths into our product suite will increase the value of the rest of our offering as we will be a single supply source for both heavy and light rare earths.”
“In addition, Kipawa isthe only rare earth project in the world in which Toyota directly invested, with an initial stake of 49% which was converted to a 10% NPI in 2014.”
“A key element of our success to date at Nechalacho has been the minimization of environmental impacts by introducing sensor based ore sorting and the contributions made by the Indigenous and other nearby communities, not only through the overall support provided, but also in achieving high levels of Indigenous and local employment and contracting opportunities. Vital looks forward to establishing similar partnerships and relationships with the Indigenous and local communities of the Kipawa and Zeus projects and using the low impact processing technology that has been successfully demonstrated at the Nechalacho project.”
Read the full release for more details.