Vital secures $3.3M for rare earth stockpile

16 June 2024

(June 17, 2024) Vital Metals Limited (ASX: VML) (“Vital”, “Vital Metals” or “the Company”) advises it has signed an agreement to sell its stockpiled rare earth material to the Saskatchewan Research Council (“SRC”) for C$3,000,000 (“the Agreement”). The sale was facilitated by Natural Resources Canada (“NRCan”), and supersedes the prior transaction announced in December 2023. Vital’s stockpiled rare earth material was derived from earlier mining on Nechalacho’s North T deposit.

Under the Canadian Critical Minerals Strategy, Canada recognizes that critical minerals are strategic assets. Due to their important role in priority value chains including in electric vehicles, advanced manufacturing, and defence technologies, Rare Earth Elements (REE) are among the critical minerals identified.

Key Highlights

  • Vital to sell stockpiled rare earth material from North T deposit for C$3 million (~A$3.3M), superseding previous transaction announced in December 2023;
  • Stockpiled material to be sold to Saskatchewan Research Council (“SRC”), a Treasury Board Crown Corporation overseen by the Saskatchewan Government
  • Government of Canada recognizes Nechalacho as a strategic asset that contributes to the country’s prosperity and critical minerals goals
  • Vital is focused on developing the Tardiff deposit at Nechalacho and will deliver a Scoping Study for Tardiff in CY2024, leading to project advancement as part of a national vision to support value chain integration in Canada

Vital Managing Director Dr Geordie Mark said: “This agreement highlights the strategic value and importance of the Nechalacho rare earths project, and the prioritization of a rare earths value chain in Canada.

“This sale is also beneficial in deriving value from our work at Nechalacho as we continue to advance the Tardiff rare earths deposit as a long-life, large scale project with a Scoping Study to examine potential size and scalability of Tardiff on track for delivery by the end of 2024.”

Terms of Agreement

  • Parties to the agreement are the Saskatchewan Research Council (SRC), and Cheetah Resources Corp, a 100%-owned subsidiary of Vital Metals Limited (“the Parties”);
  • The purchase price of the stockpiled rare earth material is C$3,000,000 (“Purchase Price”)
  • Payment terms are as follows:
    • 50% of the Purchase Price shall be payable by SRC within three (3) Business Days following the execution of the Agreement; and
    • 50% of the Purchase Price shall be payable by SRC in stages within a maximum of ten (10) Business Days following delivery and sorting of the Inventory.
  • The Agreement may be terminated by either Party if the other Party is in material default of the Agreement and the defaulting Party fails to cure such default within ten (10) days of written notice of the default from the non-defaulting Party.

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