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Vital Metals acquires Kipawa and Zeus projects in Quebec, strengthens Canadian rare earths portfolio

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(Kitco News) - Vital Metals Limited ("VML") and Quebec Precious Metals ("QPM") announced today that the companies have signed a binding term sheet for the acquisition by VML of QPM's 68% interest in the Kipawa exploration project and 100% interest in the Zeus exploration project, both located in Quebec, Canada, for C$8 million.

Kipawa is a heavy rare earths project, located 50km from Temiscaming in Quebec, with a Mineral Resource Estimate of 15.5Mt of eudyalite at 0.434% TREO and 0.873 ZrO2, 6.3Mt of mosandrite at 0.391% TREO, 1.018% ZrO2, 5.1Mt of britholite at 0.286% TREO, 0.944% ZrO2, and with a Proven and Probable Reserve Estimate of 19.8Mt at 0.411% TREO. Quebec Precious Metals' joint venture partner Investissement Québec holds the remaining 32% of the Kipawa project.

The Kipawa project was previously held in a joint venture with Toyotsu Rare Earth Canada, which included off-take provisions. Toyotsu's interest was converted into a 10% Net Profit Interest.

According to a press-release, Kipawa and Zeus are heavy rare earth projects which complement Vital Metals' light rare earths operations at Nechalacho and that this acquisition has potential to transform Vital into the only producer of both light and heavy rare earths in North America. Vital plans to update the 2013 Definitive Feasibility Study completed for Kipawa project.

QPM's CEO Normand Champigny stated, "We are pleased with the acquisition by Vital Metals of the projects. We have been successful in our monetization of our non-core assets since the creation of QPM in 2018."

Quebec Precious Metals (TSX.V: QPM, OTCQB: CJCFF) is a gold explorer with a large land position in the highly-prospective Eeyou Istchee James Bay territory, Quebec, near Newmont Corporation's Éléonore gold mine.

Vital Metals Limited (ASX: VML) is Canada's rare earths producer following commencement of operations at its Nechalacho rare earths project in Canada in June 2021. It holds a portfolio of rare earths, technology metals and gold projects located in Canada, Africa and Germany.

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