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Battery minerals and rare earth – one of the world’s largest ready to list

February 23, 2022

Battery minerals and rare earth – one of the world’s largest ready to list

Australia is poised to strengthen its reputation as a global resources leader with the launch of a major new rare earth and battery minerals project managed by pre-IPO company VHM Limited.

Australia is poised to strengthen its reputation as a global resources leader with the launch of a major new rare earth and battery minerals project managed by pre-IPO company VHM Limited.

The company’s Goschen Project is based on a globally significant Tier 1 critical mineral (rare earth minerals (NdPr and TbDy and zircon–titania) deposit that has been designated a ‘Major Project’ by the Australian Government.

This designation paves the way for faster permitting, funding and approvals as VHM works along its fast-tracked plan to list the company in Q2 of CY22 and commence production in 2024.

Managing director Graham Howard – a 35-year industry veteran with previous experience with Executive Management with ASX listed resource company and Senior Operations Management at the likes of Newcrest, AECOM and Aberfoyle Resources – is confident he and his team will meet this target.

The company has an Ore Reserve that supports a >20-year operation at Goschen as well as has substantial capability to convert the exploration target estimated between 2.6 billion tonnes and 3 billion tonnes, making it one of the largest, rare earth and battery metal projects in the world with scale, grades and processability far in excess of many of its competitors.

Join VHM’s chairman Don Runge and managing director Graham Howard, Thursday 24th February at 1pm (AEDT), for a live wholesale investor briefing about a pre-IPO opportunity to invest in a company that aims to build a globally significant rare earth minerals project. Click here to book your spot.

VHM’s 5584 square kilometre holdings (plus an additional 1789 square kilometres under application) – stretched across nine tenements (with four still under approval) – plays host to a 1.1 billion tonne Mineral Resource of rare earth elements, zircon and rutile material, with Proved and Probable Ore Reserves estimated at 198.7 million tonnes.And significant progress has been made to prepare for production – Stage 1 of the project’s Definitive Feasibility Study (DFS) was completed in January 2022.

This work demonstrated the Goschen Project’s high purity rare earth products (61.4% rare earth mineral concentrate (REMC) compared with competition’s average 19-26%) and sector-leading economics.

The project is expected to deliver annual production of 12ktpa in mineral rare earth carbonate (MREC) concentrate and 170ktpa of heavy mineral concentrate with substantial cash flow indicated by the $30-35 OPEX per tonne.

Stage 2 of the DFS is on track for delivery in March 2022, setting the stage for the company to list on the ASX in Q2 2022 with Canaccord Genuity signed as lead manager for VHM’s Initial Public Offering.

Standard Chartered Bank will be assisting during the IPO.

If you’d like to know more about this project and the potential investment opportunity, please click here to book in for our live investor briefing.

With the global supply of fossil fuels set to be depleted within the next 60 years and leading global economies – including the US, EU, UK and China – all looking to drastically cut carbon emissions, VHM’s rare earth elements and battery metals are set to meet rapidly rising demand.

These elements – notably neodymium, praseodymium, dysprosium and terbium – are critical components of modern electric vehicle batteries and motors, and wind turbines. They are not commonly found in minable concentrations in the earth’s crust, and 80% of current global production is controlled by China.

Analysts forecast the annual neodymium and praseodymium supply shortfall to reach 16,000 tonnes by 2030, while the annual shortfall in dysprosium is tipped to hit 1850 tonnes over the same period.

As a result, the market for these crucial commodities is forecast to grow at a compound annual growth rate of nearly 16%, from approximately US$2 billion in 2020 to roughly US$12 billion in 2030.


Much of the material extracted from the Goschen Project can be extracted from the site and proceeds with very little capital expenditure due to its sand composition – there is no crushing or grinding required.

The Goschen Project’s sand material has high grades of both rare earth and zircon minerals. The Project contains high grades of zircon (just under 30%), which positions this as one of the highest-grade undeveloped projects in the world.

On the rare earths front, the Goschen Project’s neodymium and praseodymium material has a grade of 19% to 25.3% – directly comparable to Lynas Rare Earths’ grades.

However, the two businesses differ greatly in their terbium grades – where Lynas delivers just 0.1%, VHM delivers 2.8%.

To support the business’s rapid progress in the lead-up to this listing, VHM is undertaking a pre-IPO funding round via a convertible note.

Click here to book your spot with VHM’s chairman Don Runge and managing director Graham Howard, Thursday 24th February at 1pm (AEDT). 

Reach* have been engaged by VHM to assist with their investor communications and with the management of the wholesale Pre-IPO and may receive fees depending on whether an offer is taken up by investors.

Sources


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