18 October 2021
Vital Metals Limited (ASX: VML) (“Vital”, “Vital Metals” or “the Company”) is pleased to announce it has amended its offtake agreement with Norway-based REEtec AS (“REEtec”), increasing the volume of product sold to REEtec by 50%.
Under the amended agreement, Vital will sell to REEtec rare earth carbonate product containing a minimum of 750t Neodymium/Praseodymium (NdPr), contained within 2,000t/year total rare earth oxides (TREO) with a maximum of 25% Cerium. This represents a total of 75% of Vital’s expanded operation at its Saskatoon rare earths extraction plant (refer to ASX announcement dated 5 October 2021), and represents a 50% increase in the product to be supplied under the existing Definitive Off-take Agreement (refer to ASX announcement dated 2 February 2021).
Vital Metals’ Managing Director Geoff Atkins said: “This 50% increase in product to be sold to REEtec represents a vote of confidence in Vital Metals’ ability to guarantee feedstock to the European rare earths supply chain. “This increase will result in the expansion of our Saskatoon plant to double capacity by the end of 2023 with REEtec taking 75% of the plant capacity from that time. There’s also potential for a long- term supply agreement for an additional 10 years after 2028, which would give us a guaranteed market for our products as we look to extend Nechalacho’s mine life in Stage 2 operations and bring our other projects on-line.”
REEtec’s CEO Sigve Sporstøl said: “We are very pleased to have partnered with Vital Metals and to have established a fruitful cooperation which will benefit both our companies. The increased supply of NdPr enables us to further strengthen our position as a supplier of high-quality products based on a sustainable ring process and a transparent supply chain.”