Vital Metals Limited (ASX: VML), a company developing the large Nechalacho Rare Earth Project in Canada’s Northwest Territories, which aims to underpin a significant rare earths supply chain for North America with responsibly sourced critical minerals, has provided an update on an ongoing arbitration. This legal dispute involves its subsidiaries, Cheetah Resources Pty Ltd and Nechalacho Resources Corp. (collectively, “Cheetah”), and Avalon Advanced Materials Inc. The arbitration centres on allegations that core samples at the Nechalacho site were rendered unusable following a wildfire in August 2025.
Avalon Advanced Materials initiated the arbitration, contending that Cheetah breached specific obligations outlined in a Co-Ownership Agreement between the two entities. Avalon asserts these alleged breaches led to the unsuitability of the core samples for their intended purpose. Consequently, Avalon is seeking damages from Cheetah amounting to at least CAD$16.8 million, highlighting the financial implications of the dispute.
In the latest development, Cheetah has formally submitted its responding evidence in the arbitration proceedings. The company stated that the matter is now progressing as planned, with the arbitration hearing scheduled to take place in November 2026. Vital Metals has reiterated its position, asserting that the claim brought by Avalon is “without merit” and confirming its strong intent to vigorously defend its subsidiaries against the allegations. The company also committed to keeping the market informed of any material developments regarding this matter.
