source:Kitco NEWS
Vital Metals (ASX: VML) announced on Monday 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.
According to the company’s statement, 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. The process combines high efficiency and a competitive cost structure with best in class environmental friendliness.
Managing Director of Vital Metals 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.”
Vital Metals’ Nechalacho rare earths project in Canada’s Northwest Territories hosts a world-class resource of 94.7Mt at 1.46% REO (measured, indicated and inferred). Nechalacho is about 100km southeast of Yellowknife.
The North T Zone at Nechalacho hosts a high-grade resource of 101,000 tonnes at 9.01% LREO (2.2% NdPr), making it one of the highest-grade rare earths deposits in the world.