PERTH (miningweekly.com) – Rare earths developer Vital Metals has completed a A$43-million institutional placement to fund the construction, mining and operation of its Nechalancho project, in Canada.
The company on Friday reported that it had received firm commitments for the placement of some 661.5-million shares, at a price of 6.5c each from institutional, sophisticated and professional investors.
The shares will be issued under the company’s existing placement capacity.
“We are pleased to receive such strong support for this placement from several large North American institutional investors who have joined our register, as well as from existing shareholders locally and internationally,” said Vital MD Geoff Atkins.
“This support validates our strategy to produce rare earths for a globally diversified supply chain. As demand for critical minerals including rare earth continues to grow, our Canada-based project is positioned to supply customers in North America, Europe and Asia.”
Atkins said that the placement ensured that the Stage 1 operations at Nechalancho were fully funded.
“We are excited to complete this milestone to allow mining operations to commence as we transition to a rare earth producer next quarter.”
An independent study on the construction and operation of the Nechalancho project found that the ore sorting plant would require a capital investment of $3.7-million.
Vital aims to produce a minimum of 5 000 t of contained rare earth oxide by 2025 at the Nechalancho project, and has signed an offtake agreement with REEtec for Stage 1 production with the supply of 1 000 t/y for an initial five-year period.