Vital Metals Ltd (VTMXF)

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Vital Metals

September 2021 Quarterly Report

HIGHLIGHTS

- Vital enters agreement to acquire Quebec Precious Metals Corporation’s 68% interest in Kipawa and 100% of Zeus heavy rare earth projects in Quebec, Canada, for C$8 million staged over 4 years
- Acquisition has potential to transform Vital into the only producer of both light and heavy rare earths in North America
- Construction is underway on Vital’s rare earth extraction plant in Saskatoon, Saskatchewan, Canada which will process ore from Vital’s Nechalacho mine with first feed into the plant in December 2021; first product by June 2022.
- Offtake partner REEtec increases offtake of Vital’s REO by 50% after amending existing agreement – increase equates to 75% of Vital’s expanded Saskatoon plant capacity
- Vital executes MOU with Ucore Rare Metals (TSX-V: UCU, OTCQX: UURAF) for Vital to supply a minimum of 500t REO (ex-cerium) per year for Ucore’s
ALASKA2023 project
-- Vital continues ramping up Nechalacho rare earths production following ore sorter commissioning
-- Vital intersects high-grade REO in Tardiff Zones 2 & 3 including outside existing Nechalacho resource
-- Mining intersects high-grade REO mineralisation in Nechalacho North T pit wall.

Vital Metals Managing Director Geoff Atkins said: “Vital Metals continues to grow in stature as Canada’s first rare earths producer.

“With mining and production performing well at Nechalacho, we have construction of our rare earths extraction facility in Saskatoon, Saskatchewan underway, which we have oversized to enable expanded production capacity in Stage 2 operations. We expect first feed into this before the end of CY2021.

“Our plant is being built adjacent to Saskatchewan Research Council’s rare earth processing facility, and we are excited to see Saskatoon’s rare earths hub take shape and demonstrate the capacity of Canada to be an increasingly important contributor to the rare earths supply chain.

“In addition, during the quarter we announced plans to acquire the Kipawa and Zeus heavy rare earths projects in Quebec, Canada. These projects have the potential to complement our light rare earths operations at Nechalacho and transform Vital into the only North American producer of both light and heavy rare earths.

“In recent weeks, we announced some important developments in terms of our offtake, with partner REEtec increasing its offtake of our product by 50%, equating to 75% of the expanded capacity at Saskatoon. We also executed an MOU with Ucore Rare Metals, providing us with an important and exciting entrance into the North American downstream rare earth supply chain. Ucore is the most advanced new rare earth separation company coming into the North American market, and on the back of our amended agreement with REEtec, positions Vital as a critical supplier of rare earth feedstock in two major markets, Europe and North America.

“This timing bodes well for Vital as rare earth demand and prices continue to increase."

Read at:
https://mailchi.mp/efdb332e3e65/vital-metals-september-2021-quarterly-report?e=080567558f