Vital Metals More Offtake for Canada’s Rare Earths

Vital Metals, listed on the Australian Stock Exchange, and Ucore Rare Metals, listed on the Toronto Stock Exchange, signed a Memorandum of Understanding (MoU) to supply rare earths carbonate raw materials. According to the terms of the memorandum of understanding, Vital will begin selling at least 500 tons/year of rare earth oxides to Ucore in the first half of 2024.

Rare earth oxides will be supplied to Ucore's Strategic Metal Complex (SMC) in Alaska, which will have a total rare earth oxide (TREO) separation and purification capacity of 2,000 tons per year starting in the first half of 2024. It is estimated that by 2026, the capacity of Ucore's Alaska plant will be expanded to at least 5,000 tons of TREO per year.

Geoff Atkins, general manager of Vital Metals, said that the memorandum of understanding with Ucore is an important step for Vital to position itself as an important supplier of rare earths raw materials in the critical mineral supply chain in North America.

"This agreement is an important and exciting start to enter the downstream rare earth supply chain in North America. We are particularly pleased that, similar to REEtec's position in the European market, Ucore represents the most advanced new rare earth separation company entering the North American market.

"The agreement to ensure Ucore's Alaska SMC's guaranteed supply of rare earth materials to serve the North American market is an important milestone in the realization of Vital's business plan. The agreement and the binding offtake agreement we signed with REEtec, will help make Vital an important supplier of rare earth raw materials for the European and North American markets. Atkins said: "We will continue to develop our business in Canada and have the ability to provide a full range of rare earth products for these two regions.

"We look forward to further developing our relationship with Ucore to finalize the final offtake agreement and start supplying raw materials for Alaska SMC."

Ucore Chairman and CEO Pat Ryan said that the cooperation with Vital is an indispensable step in the development of Alaska SMC, as Ucore continues to cultivate potential like-minded upstream and downstream partners in the ever-evolving Western world market. Relationship; its ultimate goal is to ensure that original equipment manufacturers transitioning to an electrified economy can continue to have access to a comprehensive North American raw material and finished product supply chain.

In July, Vital Metals produced the first rare earth product from its Nechalanco project in Canada. The company's goal is to produce at least 5,000 tons of rare earths oxides by 2025, and it has signed the first phase of production with REEtec. Under the off-take agreement, 1,000 tons per year will be supplied for the first five years.

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