Victory Metals (ASX:VTM) has signed a memorandum of understanding with Sumitomo Corporation (TYO:8053) to negotiate an offtake of mixed rare earth carbonate from the North Stanmore Heavy Rare Earth Elements Project in Western Australia.
The North Stanmore Project is thought to contain Australia’s largest indicated and inferred heavy rare earth element clay resource, measuring 235 million tonnes.
The potential deal is expected to have a five-year term, with the option to extend it by another five years, during which Sumitomo will purchase 30% of the mixed rare earth carbonate (MREC) production from North Stanmore.
Pricing for the supply of the product will be determined during negotiations for a binding agreement — which is expected before the end of October 2025 — and will be based on prevailing market prices for MREC, adjusted for the content of total rare earth oxides.
Victory Metals, which has a market capitalisation of $43.4 million, says the agreement demonstrates Sumitomo’s confidence in the quality, scalability, and sustainability of the North Stanmore Project.
The company adds it also sets the stage for future investment, project development support, and technological collaboration.
“This agreement reflects the strategic value of the North Stanmore Project and confirms the global significance of our unique heavy rare earth element composition within the North Stanmore clay deposit,” Victory Metals CEO Brendan Clark says.
“The agreed terms enable Victory to accelerate project development, enhance financing options, and expand future processing capabilities. This partnership opens exciting new opportunities for Victory to integrate into the global rare earth supply chain and secure our place as a leading supplier in the energy transition and defence sectors.”
Sumitomo Corporation is a Fortune Global 500 company, operating in over 66 countries and regions, with more than 900 subsidiaries and affiliates worldwide.
Victory Metals is an explorer and developer focused on its rare earths projects in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
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