Victory Metals (ASX:VTM) has entered a non-binding letter of intent with Sumitomo Corporation (TYO:8053) to advance offtake discussions around the North Stanmore Heavy Rare Earths Project in Western Australia.
The company will supply up to 30% of its mixed rare earth carbonate produced, or 1,000 tonnes, each year from the North Stanmore Project for an initial five year term.
The offtake framework incorporates Victory supplying up to 50 tonnes of dysprosium and terbium products per year, with an end date of 31 December 2028.
CEO Brendan Clark says this agreement marks an important milestone for the company.
“To be advancing from a memorandum of understanding into a formal letter of intent with Sumitomo Corporation, one of the world’s most respected trading giants validates the strategic importance of the North Stanmore Project on the global stage,” Clark says.
The parties signed a memorandum of understanding in December 2024, which was scheduled to expire on 31 October 2025, as reported by Mining.com.au.
“Together, we have a shared vision to establish a secure, ethical, Western-aligned supply chain of heavy rare earths, critical for renewable energy, defence and advanced technologies,” Clark adds.
“With Sumitomo’s global marketing reach and Victory’s world-class resource, this partnership positions Victory as a flagship Australian supplier into Japan, a nation leading the world in rare earth processing and innovation outside of China.”
Victory Metals is a rare earth element and critical minerals explorer based in Perth, Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Mining.com.au
