VHM (ASX:VHM) has signed a letter of interest (LOI) with Mitsui & Co (TYO:8031) for the supply of heavy mineral concentrate from the Goschen Project in Victoria, Australia.
The LOI, observing a three-year term from production starting, establishes a framework for the parties to work together towards a proposed agreement to enable VHM to sell and Mitsui purchase 40% of the heavy mineral concentrate.
As part of the LOI, Mitsui will, at its discretion, propose to provide, subject to due diligence, a trade finance facility to VHM with respect to the potential transaction.
Mitusi too has indicated interest in establishing an expanded business relationship with VHM.
CEO Ron Douglas says the partnering with a global Japanese counterparty such as Mitsui provides the company with a long-term offtake for its heavy mineral concentrate.
“It also provides a strategic funding facility,” Douglas says.
Mitsui & Co is a global trading and investment firm with a presence in over 60 countries and a diverse business portfolio covering a wide range of industries.
VHM is a rare earth and mineral sands company focused on developing its Goschen Project. The Goschen Project is a tier one integrated rare earth and mineral sands project that is set for production in Q4 2026.
Write to Aaliyah Rogan at Mining.com.au
Images: VHM
