Vital inks MOU with Ucore for the supply of rare earth carbonate
(Kitco News) - Vital Metals (ASX: VML), thefirst rare earths producer in Canada and only the second in North America,announced Tuesday that it has signed a non-binding Memorandum of Understanding("MOU") with rare earth processing technology developer Ucore Rare Metals forthe supply of rare earth carbonate for Ucore's ALASKA2023 project.
The ALASKA2023 projectfocuses on developing a Strategic Metals Complex (SMC) heavy rare earth element(HREE) and light rare earth element (LREE) separation plant in SoutheastAlaska.
Ucore's Alaska SMC plant willhave an initial 2,000t/year TREO separation and purification capacity with ascheduled commencement date in H1 2024. The Ucore Alaska SMC plant is expectedto have an expanded capacity to at least 5,000t/year TREO by 2026.
According to a statement, Vitalto sell to Ucore a minimum of 500t REO (ex-cerium)/year, commencing H1 2024.Importantly, Vital said it intends to expand production to support a minimum of50% of Ucore's envisioned 5,000t TREO/yr processing capability by 2026.
Managing Director GeoffAtkins said the MOU with Ucore was an important step in Vital positioning itselfas a key supplier of rare earth feedstock in the North American criticalminerals supply chain.
"This agreement is animportant and exciting entrance into the North American downstream rare earthsupply chain. This agreement, together with our binding off-take agreement withREEtec, will help position Vital as a critical supplier of rare earth feedstockinto both the European and North American markets. We are continuing to growour operations in Canada and are well-placed to supply both geographies withthe complete suite of rare earths," Atkins said.
Vital Metals is an explorerand developer focusing on rare earths, technology metals and gold projects. Thecompany's projects are located across a range of jurisdictions in Canada,Africa and Germany.
By Vladimir BasovFor Kitco News
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