Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Ucore Rare Metals (UCU) and Vital Metals Limited (VML) have entered into an MOU to establish a long-term supply agreement for mixed rare earth chemical concentrate
  • The mixed rare earth chemical concentrate (MREC) will be shipped to Ucore’s planned Alaska Strategic Metals Complex from Vital’s Rare Earth Extraction Plant
  • Vital to ship Ucore a minimum of 500 tpa of a cerium depleted MREC commencing in 2024
  • Vital Metals is Canada’s first rare earths producer, with production underway at their Nechalacho mine in the Northwest Territories
  • Ucore is focused on rare and critical metals resources, extraction, beneficiation, and separation technologies
  • Ucore Rare Metals Inc. (UCU) opened trading at C$0.90 per share

Ucore Rare Metals (UCU) and Vital Metals (VML) have entered into an MOU for the supply of mixed rare earth chemical concentrate.

The mixed rare earth chemical concentrate (MREC) will be shipped to Ucore’s planned Alaska Strategic Metals Complex from Vital’s Rare Earth Extraction Plant in Saskatchewan, which is expected to enter into production in 2022.

Vital Metals is Canada’s first rare earths producer, with production underway at their Nechalacho mine in the Northwest Territories. Vital aims to produce a minimum 5,000 tonnes of contained rare earth oxides (REO) at Nechalacho by 2025.

Mining at Nechalacho’s North T Zone is underway as part of Vital Metals’ Stage 1 production strategy. They are now crushing and sorting ore before it is sent to their Saskatoon cracking and leaching facility (the Rare Earth Extraction Plant) later in 2021. Vital has commenced drilling to define a mine plan for Stage 2 at Nechalacho as it works to develop a larger scale, longer life rare earths project.

Vital aims to become the lowest cost producer of mixed rare earth oxide by developing one of the highest grade rare earth deposits in the world. 

Ucore is developing the Alaska SMC as the first planned component of the Bokan-Dotson Ridge Rare Earth Element Project. The SMC will be initially designed to process up to 2,000 tonnes per annum (tpa) of US-allied MREC into individual rare earth oxides, expandable to over 5,000 tpa by 2026. The Alaska SMC will be based on the RapidSX™ rare earth element separation technology platform, developed by Ucore’s wholly owned subsidiary, Innovation Metals Corp.

There is currently no commercial rare earth separation taking place in North America and Ucore and Vital Metals envision the supply agreement as the first major step in the establishment of an independent North American supply chain.

The MOU outlines the intent for Vital to ship Ucore a minimum of 500 tpa of a cerium depleted MREC commencing in 2024, expanding to over 2,500 tpa as Ucore expands its capabilities by 2026. 

Mike Schrider, P.E., Ucore Vice President and COO commented on the partnership.

“Vital Metals is the first rare earth producer in Canada and Ucore is racing to construct the first modern rare earth processing plant in the United States.

The combination of our efforts clearly work together towards the collective goal of establishing an ex-China rare earth supply chain to ensure that Western world manufacturers have access to North American produced and sourced rare earth oxides. This partnership with Vital Metals signifies another critically important moment for the development of the Alaska SMC as we continue to cultivate collaborative relationships with potential upstream and downstream partners in the growing North American rare earth supply chain.”

Vital Metals’ Managing Director, Geoff Atkins noted that the MOU with Ucore was an important step in Vital positioning itself as a key supplier of rare earth feedstock in the North American critical minerals supply chain.

“This agreement is an important and exciting entrance into the North American downstream rare earth supply chain. To reach this agreement to ensure Ucore’s Alaska SMC has a guaranteed supply of rare earth feedstock to service the North American market is an important milestone in the delivering Vital’s business plan. This agreement will help position Vital as a critical supplier of rare earth feedstock into the North American market. We are continuing to grow our operations in Canada and are well-placed to supply both North America and Europe with the complete suite of rare earths.

We look forward to further developing our relationship with Ucore with a view to finalising a definitive off-take agreement and the commencement of supply of feedstock for the Alaska SMC.”

Ucore is focused on rare and critical metals resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability.

Ucore Rare Metals Inc. (UCU) opened trading at C$0.90 per share.

More From The Market Herald

" Search Minerals (TSXV:SMY) announces $5M private placement

Search Minerals (SMY) is conducting a non-brokered private placement for gross proceeds of up to $5,000,000.

" DLP Resources (TSXV:DLP) updates proposed private placement

DLP Resources (DLP) intends to complete an offering of up to 2,000,000 FT units for gross proceeds of $500,000.

" Advance United Holdings (CSE:AUHI) launches the Advance United Marketplace

Advance United Holdings (AUHI) has introduced a platform for owners of mineral commodities to connect with developers and producers.

" Vision Lithium (TSXV:VLI) acquires lithium property in Quebec

Vision Lithium Inc. (VLI) has closed its acquisition of a 100 per cent undivided interest in 215 contiguous mining claims in Quebec.