Vital Metals Limited (ASX: VML), an advanced stage exploration/development company, has announced a strategic two-tranche placement of $6.8 million to advance test work and studies at its Nechalacho Upper Zone Project, including its Tardiff Rare Earth and Niobium deposit in NWT, Canada. The placement aims to progress the Tardiff project through its Pre-Feasibility Study (PFS) and deploy innovative new technology that could transform the project’s economics.
The funding comprises two tranches. Strategic Resources LLC (SR), a US company, will invest $3 million in Tranche 1, with Vital issuing approximately 28.59 million shares at $0.105 per share, giving SR an initial 19.52% interest in Vital. Tranche 2, subject to shareholder approval, will involve issuing a further 36.59 million shares at $0.105 per share to accredited US investors, raising an additional $3.8 million. An additional Tranche 2 placement amount of up to A$2 million is to be confirmed within 30 days by existing major shareholders.
Vital Metals plans to use the investment to conduct drone-based aeromagnetic surveys, optimise Tardiff’s processing flowsheet, update Tardiff’s Mineral Resource Estimate (MRE), and deliver a Pre-Feasibility Study. A key objective is to continue testing and scaling up Dry Field Force Extraction (DFFE) technology, which utilises a dry process without water or chemical reagents, potentially reducing capital, transport, and downstream refining costs. The company anticipates a DFFE facility operating at North T starting in the Canadian summer of 2026.
According to Vital Metals’ Managing Director, Lisa Riley, the investment from SR comes at an important time and will allow the company to test the potential for DFFE to be an economic game-changer at Tardiff, as well as North T and surrounding areas. Strategic Resources’ CEO, David Dikken, stated that the successful application of DFFE has shown great promise for both immense environmental benefit and commensurate economic return.
