Victory Metals has raised $3m via an oversubscribed placement to advance its North Stanmore Rare Earth Element (REE) Project in Cue, Western Australia.

The plan is to use the proceeds to finalise the maiden JORC (2012) Mineral Resources Estimate (MRE) and conduction exploration drilling at the project.

Earlier this month, initial leach testing of samples recovered up to 63.6% lutetium, 60% dysprosium and 58% terbium.

The dysprosium and terbium are particularly notable, having a combined value of about US$1,070 per kilogram compared to the already valuable magnet REEs neodymium and praseodymium (NdPr), which have a combined value of US$113/kg.

The company plans to conduct further metallurgical test work, supported by the placement.

Aiming to become a REE producer

“This placement provides a platform for the company to accelerate its emergence as a future rare earth elements producer in Australia through advancing the North Stanmore REE Project,” Victory Metals (ASX:VTM) CEO and executive director Brendan Clark said.

“I’d like to thank existing shareholders for their continued support and we welcome our new investors to the register.”

The issue price of $0.24 per placement share is a 8.6% discount to the 15-day VWAP prior to the stock being placed in a Trading Halt.

The placement includes 4,166,667 unlisted options at an exercise price of $0.30 and a maturity date 11 November 2024, with each investor to receive one option for every three shares subscribed for under the placement.

 

 

 

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.

Read MoreRare Earths

Featured Companies

You might be interested in