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REEtec has signed a five-year off-take agreement with Vital Metals (VML) for its rare earth oxide (REO) product. The REO will come from Vital Metals’ Nechalacho mine in Canada’s northwest territories, which hosts a resource of almost 95 million tonnes with about 1.5% REO.
Under the agreement, Vital Metals has agreed to hand over 1000 tonnes of cerium depleted REO per year to REEtec. The agreement also includes an option to increase off-take volumes up to 5000 tonnes REO per annum over 10 years.
“In the same way that Vital is focusing on the development of a low environmental impact mining operation, it is also a pleasure to be able to join with a like-minded company to develop a source of rare earths.”
Commenting on the agreement, Vital Metal’s Managing Director Geoff Atkins said the company was delighted to be partnering with REEtec.
– In the same way that Vital is focusing on the development of a low environmental impact mining operation at Nechalacho in Canada’s Northwest Territories, it is also a pleasure to be able to join with a like-minded company to develop a source of rare earths to support our customers in the diversification of their supply chains, he said.
CEO, Sigve Sporstøl in REEtec said:
– We believe the step-by-step growth approach of Vital is complementary to our own. We look forward to growing our businesses together while providing our partners further down the value chain with a more diversified source for their much-needed magnetic materials.
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