- Vital Metals (VML) has signed a five-year agreement with REEtec AS for the sale of its rare earth oxide (REO) product from its Nechalacho mine
- The agreement sets out the terms for a 1000 tonnes REO per annum offtake and profit-sharing agreement between the two companies
- REEtec is interested in the product as it has developed a proprietary and sustainable process for the manufacture of rare earth elements
- Meantime, Vital has the option of increasing the REO offtake to 5000 tonnes per annum for a period of 10 years
- Payment terms for the offtake and profit-sharing agreement will be set out in the definitive agreement, which should be executed by early next year
- Today, VML Director Philip Coulson also announced his resignation, effective immediately
- He’s stepped down to focus on other business interests as Vital works towards production in the new year
- Shares in VML have opened the week trading steady at 3.2 cents each
Vital Metals (VML) has signed a five-year offtake and profit-sharing agreement with REEtec AS for the sale of its rare earth oxide (REO) product.
The REO product will come from Vital’s Nechalacho mine in Canada’s northwest territories, which hosts a resource of 94.7 million tonnes at 1.46 per cent REO.
Under the agreement, VML has agreed to hand over 1000 tonnes of REO per annum to REEtec.
The Norwegian company has developed a proprietary and sustainable process for the manufacture of rare earth elements.
The binding term sheet signed by both companies also includes an option to increase offtake volumes up to 5000 tonnes REO per annum over 10 years.
Commenting on the agreement, Vital Metal’s Managing Director Geoff Atkins said the company was delighted to be partnering with REEtec.
“In the same way that Vital is focussing on the development of a low environmental impact mining operation at Nechalacho in Canada’s Northwest Territories, it is also a pleasure to be able to join with a like-minded company to develop a source of rare earths to support our customers in the diversification of their supply chains,” he said.
Exactly how much Vital stands to make from this offtake agreement is yet to be disclosed, with the definitive agreement to set out payment terms.
The definitive agreement is set to be executed on or before January 31, 2021, unless extended.
Today, VML Director Philip Coulson also announced his resignation, effective immediately.
He’s stepped down to focus on other business interests as Vital works towards production in the new year.
Shares in Vital Metals have opened the week trading steady at 3.2 cents each.