- Vital Metals (VML) has entered into a definitive five-year offtake and profit-sharing agreement with REECtec AS
- Under the agreement, the company will provide REEtec with 1000 tonnes of rare earth oxide (REO) product per year
- Vital Metals will provide the REO product from its Nechalacho mine, situated in Canada’s north-western territories
- Both companies have the option to increase the offtake volume by up to 5000 tonnes over the next 10 years
- Vital Metals is up 7.14 per cent and trading at 4.5 cents per share
Vital Metals (VML) has entered into a definitive five-year offtake and profit-sharing agreement with REECtec AS.
The companies agreed to the terms of the arrangement in December 2020.
Under the agreement, Vital Metals will provide REEtec with mixed rare earth carbonate product, from its Nechalacho mine in Canada’s north-western territories. The annual delivery of mixed product will contain 1000 tonnes of rare earth oxide product per year.
Both Vital Metals and REEtec will have the option increase the offtake volume by up to 5000 tonnes over the next 10 years.
The pricing structure of the agreement will encourage both parties to minimise the total costs of producing separated rare earth oxide products.
The rights and obligations outlined in the definitive offtake agreements depend upon the companies making a final investment decision regarding development of their respective commercial plants.
Vital Metal’s Managing Director, Geoff Atkins, commented on the significance of the company’s agreement with REEtec.
“The signing of the definitive Offtake Agreement is a major milestone for Vital and our commitment to provide a secure supply of rare earth feedstock to the rare earth supply chain,” he said.
“The signing of this Agreement will enable REEtec and Vital to work together to supply separated rare earth oxides, which are competitive to products produced anywhere else in the world into the electric vehicle and wind turbine markets,” he added.
Vital Metals is up 7.14 per cent, trading at 4.5 cents per share at 12:31 pm AEDT.