Mining News
Canada’s first rare earths producer Vital Metals raises A$45M to complete transition to REO operations
(Kitco News) - Canada's first rare earths producer Vital Metals (ASX: VML, OTCQB: VTMXF) announced today it has raised A$45 million via a targeted placement, with private equity firm Lionhead Resources Fund becoming a cornerstone investor following its A$30 million investment.
Vital said it 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.
In addition, the company will use proceeds for accelerated development of Tardiff deposit at Nechalacho, Canada, including mining studies, and to provide working capital requirements as Vital transitions from rare earths exploration and development into operations.
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," he added.
Vital Metals is Canada's first rare earths producer following commencement of production 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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