- Vital Metals’ (VML) Canadian subsidiary set to receive a C$5 million (A$5.3 million) funding boost for its planned rare earth extraction facility in Canada’s Saskatchewan province
- Vital Metals Canada signed an agreement with PrairiesCan, which is the Canadian Government’s Regional Economic Development Agency for the Prairies region
- The funding will cover 32 per cent of costs relating to establishing operations and commissioning the rare earth extraction facility in the city of Saskatoon
- Vital says the plant will process bastnaesite concentrate to produce a mixed rare earth carbonate
- VML shares 10 per cent higher at 6.6 cents
Vital Metals’ (VML) wholly-owned Canadian subsidiary has secured a C$5 million (A$5.3 million) funding boost.
The company said Vital Metals Canada signed an agreement with Canadian Government agency PrairiesCan — formerly Western Economic Diversification Canada — for the funding facility, which has been provided under Canada’s Jobs and Growth Fund.
The funding will provide extra working capital as Vital looks to commission and ramp up operations to production at its planned Saskatoon rare earths extraction plant in the Canadian province of Saskatchewan.
Vital said the plant will serve to process bastnaesite concentrate to produce a mixed rare earth carbonate.
Specific activities associated with developing the processing plant include engineering and design, buying equipment, installation, commissioning and optimisation.
The company said the PrairiesCan funding will cover 32 per cent of eligible costs relating to establishing operations and commissioning of the Saskatoon rare earth extraction facility.
Managing Director Geoff Atkins said he was pleased to receive the funding support from the Canadian Government while Vital was ramping up the Saskatoon project.
“We welcome this additional funding which will be a great addition to our working capital requirements during commissioning of Vital’s rare earth extraction facility in Saskatoon,” he said.
“With production forecast to commence in June 2022, this will make Vital North America’s only producer of high-purity rare earth carbonate with feed from its own mines providing security of supply for the global rare earths supply chain.”
Vital will pay back the $5 million loan on a monthly payment basis starting from April 1, 2024. There is no interest rate associated with the funding facility.
VML shares were trading 10 per cent higher at 6.6 cents at 1:05 pm AEST.