Victory Metals attracts $11.5m to target 83% heavy rare earth zone

• Victory Metals raises $11.5m in an institutional placement 
• Funds will be spent on drilling ultra-high heavy rare earth zones up to 83% HREO/TREO
• It will also support efforts to ramp up scandium oxide production

Special Report: Victory Metals has secured $11.5m in an institutional placement to support targeted drilling of heavy rare earth zones at the North Stanmore project in WA. 

Placement shares were priced at $1.35 per share, representing a 15% discount to the 15-day VWAP prior to a trading halt on August 25.

Institutional, professional and sophisticated investors strongly backed the placement, which had Bell Potter Securities as sole lead manager and book runner. 

Victory Metals (ASX:VTM) CEO and executive director Brendan Clark said the raise supported the strong momentum at North Stanmore as it emerged as one of the world’s most advanced heavy rare earth clay projects. 

“I thank existing shareholders for their continued support and we welcome institutional, professional and sophisticated investors,” he said. 

Background on North Stanmore 

North Stanmore is uniquely low in radioactive elements and hosts high concentrations of heavy rare earths such as dysprosium and terbium along with strategic by-products of scandium, hafnium and gallium – all considered essential to US national security. 

The explorer has a US$190m Letter of Interest from the Export Import Bank of the United States of America (EXIM) and continues to advance funding discussions with strategic and government partners.

Use of placement funds

Victory plans to use the placement funding for targeted drilling of ultra-high heavy rare earth zones of up to 83% HREO/TREO within and surrounding the North Stanmore resource area. 

Additionally, it will support efforts to ramp up scandium oxide production and push the feasibility study forward.

This article was developed in collaboration with Victory Metals, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.