3 April 2022
Vital Metals Limited (ASX: VML l OTCQB: VTMXF) (“Vital”, “Vital Metals” or “the Company”) is pleased to announce that its wholly owned subsidiary, Vital Metals Canada Ltd (“VMCL”), has signed a funding agreement with PrairiesCan (formerly Western Economic Diversification Canada) for C$5 million. The funding has been provided under Canada’s Jobs and Growth Fund.
The C$5m funding assists with working capital during ramp-up of the Company’s operations, including establishing the Saskatoon Rare Earth Extraction facility in Saskatchewan, for processing bastnaesite concentrate to produce a mixed rare earth carbonate. Activities associated with the new plant, for which funding is available, include engineering and design, equipment purchase and installation, commissioning, and optimization to finalise establishment of the new processing facilities.
The funding relates to reimbursement of 32% of eligible expenditure incurred by VMCL from 19 April 2021 to March 31, 2023 in respect of the Saskatoon Plant, with a maximum reimbursement of $3m for expenditure incurred to 31 March 2022 and C$2m for expenditure incurred to 31 March 2023.
Vital Metals’ Managing Director Geoff Atkins said: “We are very pleased to have the support of the Canadian Government through the funding provided by PrairiesCan, especially at this very exciting time as we ramp-up our operations to production. We welcome this additional funding which will be a great addition to our working capital requirements during commissioning of Vital’s Rare Earth Extraction facility in Saskatoon. With production forecast to commence in June 2022, this will make Vital North America’s only producer of high purity rare earth carbonate with feed from its own mines providing security of supply for the global rare earths supply chain.”