PERTH (miningweekly.com) – ASX-listed Vital Metals has completed the acquisition of privately-held Cheetah Resources, following shareholder approval earlier this month, with the company’s focus now turning towards the Thor Lake rare earths project, in Canada.
Vital acquired all of the issued capital in Cheetah Resources in return for 400-million fully paid ordinary shares.
A number of performance shares will also become payable on the achievement of certain milestones, including Vital entering into a binding offtake for a minimum of 1 000 kg of contained rare earth oxide over the Thor Lake project or the Wigu Hill project, within two years of the acquisition, or the start of mining operations at either Thor Lake or Wigu Hill.
Vital MD Geoff Atkins on Tuesday said that the completion of the Cheetah acquisition transformed Vital into a near-term rare earth oxide producer, with an early works programme already launched at the Thor Lake project.
“We have hit the ground running following the completion of the Cheetah acquisition. Over the past few months we have been very fortunate to have continued the development of the Nechalancho rare earths project while Vital undertook its regulatory approvals process.
“We have completed our infill drill programme on both the North T rare earth oxide deposit and commenced optimisation of the ore sorting concentration testwork and hydrometallurgical process testwork on the high-grade bastnaesite ore which will ultimately feed into our start-up study into becoming the next rare earth oxide producer.”
Nechalancho or Thor Lake, is currently estimated to host a 149.3-million-tonne resource, grading 1.42% rare earth oxide.