Vital Metals on track for Q2 rare earths production

Subiaco-based Vital Metals will use $43 million raised from a share placement to complete the construction of its rare earths project in Canada.

Vital Metals plans to become the first rare earths producer in Canada and the second in the US, with first production at its Nechalaco project expected before June 30.

Mining operations will start this month, with Vital Metals having contracted Canadian business Det’on Cho Nahanni Construction to complete mining, crushing, screening and other operational works.

An ore sorter and other equipment will likely be delivered to site by the end of March, Vital Metals said.

Managing director Geoff Atkins said the placement proceeds would ensure stage one of the Nechalacho project was fully funded.

“We are excited to complete this milestone to allow mining operations to commence as we transition to a rare earth producer next quarter,” he said.

Vital Metals is currently drilling the project’s Tardiff deposit, where it hopes to define a preliminary mine plan as part of stage two operations.

The company will issue about 661.5 million shares priced at 6.5 cents each, with Canaccord Genuity acting as lead manager and bookrunner to the placement.

New York-based Tectonic Advisory Partners is acting as co-lead manager and Sydney’s Peloton Capital as co-manager.

Vital Metals closed down 6.3 per cent to trade at 7.5 cents.