Vital Metals (ASX:VML) has entered a short-term loan agreement with a syndicate of lenders for $2 million to help fund continued development of the Tardiff rare earths deposit in Northwest Territories, Canada.
The lenders include privately held entities Malekula Projects, INVL Group, and Treasury Services Group as trustee for the Nero Resource Fund.
Addressing the loan, Vital’s Interim Chairman Richard Crookes says: “We are pleased to have executed this loan agreement with such supportive parties, which will enable us to continue our activities at Tardiff, part of our Nechalacho project in Canada.
“The loan is intended to be a short-term bridge while the Company assesses available funding options“
The loan is intended to be a short-term bridge while the Company assesses available funding options. We continue to advance our technical studies at Tardiff and expect to announce further assay results from our 2023 Tardiff drilling campaign this quarter, and will shortly publish an update to Tardiff’s Mineral Resource Estimate, completed by a leading independent industry consulting group.
Tardiff is expected to further grow its status as one of the largest single deposits of neodymium and praseodymium in the western world. Our Tardiff Scoping Study remains on track for completion in early CY2024.”
Vital is concluding the strategic review of its Saskatoon rare earths processing facility and will provide an update on its long-term future and viability as soon as practicable.
Vital Metals is Canada’s first rare earths mining company following commencement of mining at its Nechalacho rare earths project in Canada in June 2021. It holds a portfolio of rare earths, technology metals and gold projects located in Canada and Germany.
The Nechalacho Rare Earth Project is located at Nechalacho in the Northwest Territories of Canada and has potential to develop into a significant large-scale supplier of critical electric motor magnet minerals.
More than $120 million has been spent by previous owners on drilling, permitting and project development at Nechalacho, which includes a 40-person camp and airstrip.
Vital aims to be the largest independent supplier of clean mixed rare earth feedstock outside China.
Write to Adam Orlando at Mining.com.au
Images: Vital Metals
