Victory Metals (ASX:VTM) mentioned Tuesday (December 17) that it has signed a strategic non-binding memorandum of understanding (MOU) with Sumitomo (TSE:8053), a number one built-in buying and selling and funding enterprise.
The MOU establishes a possible long-term blended uncommon earth carbonate offtake partnership between the 2 firms. It’s going to have an preliminary 5 yr offtake time period with a attainable 5 yr extension.
In line with Victory Metals, its goal is to offer Sumitomo with 30 p.c of the annual blended uncommon earth carbonate manufacturing from the North Stanmore heavy uncommon earth components (HREE) challenge.
“We’re extraordinarily happy to be partnering with Sumitomo Company, a globally recognised powerhouse with in depth business experience and a confirmed observe report of securing important mineral provides,” mentioned CEO and Govt Director Brendan Clark. “This settlement displays the strategic worth of the North Stanmore Mission and confirms the worldwide significance of our distinctive heavy uncommon earth factor composition throughout the North Stanmore clay deposit.”
North Stanmore is positioned roughly six kilometres from Cue, Western Australia, and holds six tenements.
A resource estimate published in July exhibits that the challenge holds 235 million tonnes, with 63 p.c within the indicated class. Victory Metals mentioned this represents Australia’s largest indicated useful resource for HREE-dominant deposits.
The corporate will talk about pricing with Sumitomo throughout negotiations for a binding time period sheet, which they purpose to enter by October 31, 2025. Different materials phrases will probably be mentioned at the moment as nicely.
“We plan to make the most of our world community to promote the uncommon earths produced by Victory. We stay up for future partnerships,” Sumitomo commented in Tuesday’s press launch.
“Sumitomo’s monetary power, world logistics experience and dedication to sustainable development make it the perfect long-term companion for Victory Metals as we proceed to progress (North Stanmore) in direction of growth,” Clark added.
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Securities Disclosure: I, Gabrielle de la Cruz, maintain no direct funding curiosity in any firm talked about on this article.
