Australian Vital Metals (ASX: VML) and Quebec Precious Metals (QPM) (TSXV: OPM; OTC: CJCFF) have signed a binding term sheet for Vital to acquire QPM’s 68% interest in the Kipawa exploration project and 100% interest in the Zeus exploration properties for $8 million.
Vital owns the Nechalacho rare earths mine in the Northwest Territories. Yesterday, the company voluntarily ceased trading on rumours of expansion.
QPM’s Kipawa and Zeus properties are about 50 km east of Temiscamingue, Que. The Kipawa heavy rate earths deposit has 43-101 compliant proven and probable reserves of 19.8 million tonnes averaging 0.41% total rare earth oxide (TREO). It is defined by three enriched horizons within a syenite complex that also contains some light rare earths. At the Zeus property, 12 heavy rate earth showings have been found, and some of them contain niobium and tantalum.
Vital has agreed to pay a $1.5 million deposit when the term sheet is signed, and another $2.4 million when the property acquisition is completed. QPM will also receive $2.5 million on the first anniversary of the acquisition, and $1 million on each of the next three anniversaries.
QPM is focusing its energy on core precious metals projects in the James Bay region of Quebec.
The next step for Kipawa and Zeus is for Vital to update the 2013 feasibility study.
Earlier this year, Vital became the only Canadian producer of rate earths when it acquired the Nechalacho mine in the Northwest Territories. Production began from the North T zone in June with the crushing and sorting of ore at the site. The concentrate will be transported to the company’s extraction plant in Saskatoon, Sask., later this year. Meanwhile, the company is drilling to define plans for the Tardiff deposit.
Vital also has an option with Montero Mining and Exploration to acquire and develop the Wigu Hill light rare earths deposit in Tanzania.
Learn more at www.VitalMetals.com.au.