Vital, which became Canada's first rare earth producer in April with the start-up of operations at Nechalacho, has positioned itself to supply rare earth carbonate feedstock for Ucore Rare Metals' under-construction Alaska2023 project.

 

The deal envisions the sale of at least 500 tonnes of rare earth oxides, excluding cerium, from the first half of 2024, with a view to delivering 2500tpa by 2026 - half of Alaska2023's planned production capacity.

 

UCore is focused on developing North American production of both heavy and light rare earth elements in Alaska, using Innovation Metal's proprietary RapidSX critical metals separation technology.

 

Step one will be to deliver a trial parcel of ore from Nechalacho for testing by the end of the year.

 

Vital is already supplying REEtec in Europe, and managing director Geoff Atkins said the UCore MoU was an important step in positioning Vital as a key link in a North American critical minerals supply chain, reducing its dependence on China. 

 

He described UCore as "the most advanced new rare earth separation company entering into the North American market".

 

As Vital plans to expand operations at Nechalacho and its other projects in Canada and Tanzania, he said the company was well positioned to supply both European and North American customers as downstream processing facilities are commissioned. 

 

The pair hope to complete a definitive agreement within even months.

 

Vital has made significant progress this year, with REEtec increasing its offtake agreement by 50%, as Vital's extraction plant at Saskatoon, Saskatchewan, prepares to accept first feed in December.

 

Yesterday, Vital said REEtec had upped its order to 750tpa of neodymium-praseodymium, within 2000tpa of REO over five years, about 75% of the Saskatoon plant's expanded capacity. It comes with an option for an expanded 10-year agreement.

 

Commercial production from Saskatoon is expected in mid-2022, with an initial 1000tpa target.

 

Vital shares have traded between 2.2-9c over the past year, and closed yesterday at 6.2c, valuing it at $285 million.