- Vital Metals (VML) terminates its agreement with Quebec Precious Metals (QPM) to acquire its interests in two projects in Quebec, Canada
- The company attributed the termination towards the Kipawa First Nations people’s stated objection and unsatisfactory due diligence completed by former management
- Further, progressing the agreement would divert funds needed from the company’s high priority Nechalacho project construction which would take several years to develop
- Development of the mineralisation at the company’s North T would allow the company to achieve its vision of producing commercial quantities of rare earths
- Shares in Vital are down 3.03 per cent, trading at 3.2 cents as of 11:23 am AEDT
Vital Metals (VML) has terminated its agreement with Quebec Precious Metals (QPM) to acquire its interests in two projects in Quebec, Canada.
The company was looking to purchase QPM’s 68 per cent interest in the Kipawa project and a 100 per cent interest in the Zeus project.
The rare earths producer attributed the termination towards the Kipawa First Nations people’s stated objection, and its ability to determine whether support from them can ever be obtained for its exploration and development of the projects.
Vital also said it wasn’t satisfied with the technical due diligence completed by former management who aimed to utilise alternate development and processing methodologies.
Additionally, Vital Metals realised that proceeding with the acquisition would divert funds from the development of its high priority Nechalacho project.
“We see significantly more value for our shareholders in aggressively advancing stages one and two of our Nechalacho project and in our existing Project pipeline, rather than being distracted on less rewarding opportunities,” interim CEO Russell Bradford said.
In addition, Vital has the opportunity to develop the previously reported xenotime mineralisation at the company’s North T pit near the base of the current mining envelope.
Development of this mineralisation would allow the company to achieve its vision of producing commercial quantities of both light and heavy rare earths.
Shares in Vital were down 3.03 per cent, trading at 3.2 cents as of 11:23 am AEDT.