Vital Raises $45M to Complete Transition to REO Operations

1 August 2022

August 1, 2022


  • Vital Metals has raised A$45 million in a targeted Share Placement at A$0.04 per share
  • Cornerstone investor Lionhead Resources Fund LP has invested A$30m in the Placement which will include the nomination of two directors to the Vital Board
  • Vital will use proceeds to fund:
    • Finalisation of construction activities and undertake commissioning, ramp-up and operations at its Rare Earth Extraction Facility in Saskatoon, which will produce a rare earth carbonate product
    • Accelerated development of Tardiff deposit at Nechalacho, Canada, including mining studies
    • A strong balance sheet for ongoing working capital requirements
  • Vital is executing a three-stage strategy to become the world’s first producer of commercial quantities of heavy and light rare earths.

Canada’s first rare earths producer Vital Metals Limited (ASX: VML l OTCQB: VTMXF) (“VML”, “Vital” or the “Company”) is pleased to announce it has raised A$45 million via a targeted placement, with private equity firm Lionhead Resources Fund LP (“LHR”) becoming a cornerstone investor following its A$30 million investment. Vital completed the placement at an issue price of A$0.04 per share via a share placement to institutional, sophisticated and professional investors with 1,125 million new fully-paid ordinary shares to be issued (“Placement”).

Vital received strong support for the Placement. The Placement was led by Joint Lead Managers Petra Capital and MST Financial. Financial advisers were Tectonic Advisory Partners (“Tectonic”) and Transocean Securities Pty Ltd. Tectonic is a New York based critical metals focused boutique investment banking group. Tectonic securities transactions are executed through Ecoban Securities Corporation.

LHR with the right to appoint two non-executive directors to the Vital Board.

Proceeds from the Placement will finalise construction, commissioning and ramp-up of Vital’s Saskatoon Plant and enable it to accelerate development of projects including the Tardiff deposit at Nechalacho, as it executes a strategy to become the world’s first producer of commercial quantities of both heavy and light rare earths. It will also provide working capital requirements as Vital transitions from rare earths exploration and development into operations.

Vital Metals’ Managing Director Geoff Atkins said:

“Vital Metals is on the threshold of becoming North America’s only company capable of producing a refined rare earth product from its own mine, completing our transition from exploration and development to production and operations. This is an important milestone, not only in the development of Vital, but also the North American and European rare earth supply chains.

“This placement allows us to finalise construction and commissioning and enter the operational phase of our Saskatoon plant with a robust balance sheet and working capital that can sustain our production well into the future, even amid ongoing global economic and geopolitical uncertainty.

“We have a clear vision of the goal we want our Company to achieve – to become the world’s first producer of commercial quantities of both light and heavy rare earths. Having completed our first mining campaign at Nechalacho’s North T deposit, we now look to developing the much larger Tardiff deposit that can help us achieve this. Placement funds will allow us to accelerate mining studies and permitting works for Tardiff so that we can realise greater value from this project for our Shareholders. It’s important that we take advantage of this strategic opportunity and cement our position in global rare earths production, as Nechalacho is only the first of our project development prospects.

“We also welcome Lionhead Resources as a cornerstone investor in Vital. Lionhead brings a wealth of knowledge and experience which will benefit our company through this transition phase. The group’s decision to join Vital is a huge vote of confidence in the team and Vital’s ability to deliver on its vision. We would also like to thank Petra Capital, MST Financial and Tectonic and welcome all new investors to the register as we look forward to a successful future.”

See full release for more detail.