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Vital Metals (ASX:VML) Secures C$5M Funding for Saskatoon Rare Earths Mining Facility – The Market Herald

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  • The Canadian subsidiary of Vital Metals (VML) is set to receive a C$5 million (A$5.3 million) funding boost for its planned rare earths mining facility in the Canadian province of Saskatchewan
  • Vital Metals Canada has signed an agreement with PrairiesCan, which is the Canadian government’s regional economic development agency for the Prairie region
  • The funding will cover 32% of the costs associated with establishing operations and commissioning the rare earths mining facility in the City of Saskatoon.
  • Vital says plant will process bastnaesite concentrate to produce mixed rare earth carbonate
  • VML shares 10% more at 6.6 cents

The Canadian wholly-owned subsidiary of Vital Metals (VML) has secured a C$5 million (A$5.3 million) funding increase.

The company said Vital Metals Canada had signed an agreement with Canadian government agency PrairiesCan – formerly Western Economic Diversification Canada – for the financing facility, which was provided under the Canada Fund for Development. jobs and growth.

The funding will provide additional working capital as Vital seeks to commission and ramp up operations to production at its rare earths mining plant in Saskatoon, in the Canadian province of Saskatchewan.

Vital said the plant will be used to process bastnaesite concentrate to produce mixed rare earth carbonate.

Specific activities associated with process plant development include engineering and design, equipment procurement, installation, commissioning and optimization.

The company said funding from PrairiesCan will cover 32% of eligible costs associated with establishing operations and commissioning the Saskatoon rare earths mining facility.

General Manager Geoff Atkins said he was pleased to receive financial support from the Canadian government as Vital ramped up the Saskatoon project.

“We welcome this additional funding which will be a great addition to our working capital needs as Vital’s rare earths mining facility in Saskatoon comes online,” he said.

“With an expected start of production in June 2022, this will make Vital North America the only producer of high-purity rare earth carbonate with feed from its own mines, ensuring security of supply for the global supply chain. in rare earths.

Vital will repay the $5 million loan on a monthly installment basis beginning April 1, 2024. There is no interest rate associated with the financing facility.

Shares of VML were trading up 10% at 6.6 cents at 1:05 p.m. AEST.