Vital Metals (ASX:VML) raises $45 million for the works of a rare earths project in Canada – The Market Herald

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  • Rare earth producer Vital Metals (VML) raises $45 million via targeted equity placement
  • The money was raised through the issuance of 1.12 billion new fully paid shares of common stock to institutional, sophisticated and professional investors at four cents per share.
  • Lionhead Resources Fund has invested $30 million and will now appoint two directors to Vital’s board and become Vital’s largest shareholder, with a 14.1% stake
  • Vital will use the money to finalize the construction, commissioning and ramp-up of its Saskatoon plant and accelerate development of the Tardiff deposit
  • Shares of Vital Metals are down 2.33% and trading at 4.2 cents at 1:57 p.m. AEST

Rare earth producer Vital Metals (VML) has raised $45 million through a targeted equity placement.

The money was raised by issuing 1.12 billion new fully paid shares of common stock to institutional, sophisticated and professional investors at four cents per share.

Lionhead Resources has invested $30 million and will now appoint two directors to Board of directors of Vital and becoming Largest shareholder of Vital, with a 14.1% stake.

Under the terms of the investment agreement with Lionhead, as long as Lionhead holds a 10% interest in Vital, she has the right to nominate two nominees to the board, and if she has a 5% stake, she has the right to nominate one nominee to the board.

Vital will use the money to finalize the construction, commissioning and ramp-up of its Saskatoon plant and accelerate development of the Tardiff deposit.

“This placement allows us to finalize the construction and commissioning and enter the operational phase of our Saskatoon plant with a strong balance sheet and working capital that can support our production in the future, even in a difficult environment. of global economic and geopolitical uncertainty,” Chief Executive Geoff said. Atkins commented.

“We have a clear vision of the goal we want our company to achieve: to become the world’s leading producer of commercial quantities of light and heavy rare earths.

“The investment funds will allow us to accelerate mining studies and permitting work for Tardiff so that we can realize greater value from this project for our shareholders.”

Shares of Vital Metals fell 2.33% and were trading at 4.2 cents at 1:57 p.m. AEST.