Vital Metals Limited (ASX: VML) ('Vital Metals' or 'the Company') is pleased to announce that it has entered into a binding term sheet that sets out the in-principle terms for an offtake and profit-sharing agreement in respect of raw material from the Nechalacho mine between the Company and REEtec AS ('REEtec').
The key terms of the agreement are set out in further detail below and are subject to execution of a definitive agreement on or before 31 January 2021 (unless extended) ('Definitive Agreement').
REEtec is a Norwegian company that has developed a completely new and potentially game changing process for the separation of high purity rare earth elements ('REE') ('REEtec Products'). The patent pending technology has been proven through the successful operation of an industrial scale demonstration plant at the Heroya Industrial Park close to Porsgrunn, Norway. The process combines high efficiency and a competitive cost structure with best in class environmental friendliness. REEtec reutilises virtually all consumables in the production process. The energy demand is very low and electricity consumption is 100% based on hydro-electric sources.
REEtec was founded by Scatec Innovation. Over a period of more than thirty years, Scatec Innovation has taken a leading role in the industrialization of several ground-breaking technologies in renewable energy and advanced materials. Scatec Innovation holds significant ownership positions in both private and public companies.
Vital Metal's Managing Director, Geoff Atkins commented: 'We are delighted to secure this significant off-take term sheet with a partner such as REEtec. The agreement will form the foundation for the development of the Company's Processing Operations in 2021. 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 likeminded company to develop a source of rare earths to support our customers in the diversification of their supply chains. To achieve this whilst highlighting the potential for low environmental impact rare earth supply chains is extremely pleasing.'
REEtec's CEO, Sigve Sporstol commented: 'We believe the step-by-step growth approach of Vital is complementary to our own. We look forward to growing our businesses together while providing our partners further down the value chain with a more diversified source for their much-needed magnetic materials.'
REEtec Chairman and Scatec Innovation CEO, John Andersen, Jr. commented: 'We are pleased to have partnered with Vital Metals which we consider to be a leading supplier of rare earth concentrate outside of China. We look forward to a prosperous working relationship with Vital, thereby securing stable supply of rare earth elements, a critical product for the performance of electric vehicles, wind turbines, consumer electronics and industrial robots.'
Contact:
Mr Geoff Atkins
Tel: +61 2 8823 3100
Email: vital@vitalmetals.com.au
About Vital Metals
Vital Metals Limited (ASX: VML) is an explorer and developer focussing on rare earths, technology metals and gold projects. Our projects are located across a range of jurisdictions in Canada, Africa and Germany.
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