The Vital Metals Limited (ASX: VML) share price has been busy this past week.
Shares in the rare earth miner have soared more than 30% since last Monday.
Vital Metals continued the positive momentum today, after releasing a promising update.
Here’s what the company had to announce.
Vital Metals share price surges on US capital markets expansion
The Vital Metals share price has surged today after the company announced its intention to expand into US capital markets.
In its market update, the company informed shareholders that it has engaged a consulting and advisory service.
To that end, Vital Metals noted it has signed an agreement with Ecoban Securities Corporation, specifically with its listing arm Tectonic.
The agreement will see Tectonic serve as the company’s North American investor relations and capital markets consultant and advisor.
Under the agreement, Tectonic will perform a range of services for the promotion and management of securities in Vital Metals.
Vital Metals informed investors that expansion into US capital markets follows the success of its operations at its Nechalacho rare earth project in Canada’s Northwest Territories.
As part of the agreement, the company will issue 10,000,000 3-year unlisted options to Tectonic.
These options will have an exercise price of $0.07 and are subject to various vesting conditions being met.
Tectonic will be familiar to many Vital Metals shareholders. The company assisted the rare earth miner with its $43 million capital raise earlier this year.
More on Vital Metals
Vital Metals is a mining explorer and developer focusing on rare earths, technology metals and gold projects. The company’s flagship projects include the Nechalacho Rare Earth Project and its Wigu Hill project in Tanzania.
Last week, Vital Metals provided a couple of updates on its Nechalacho project.
Last Tuesday, the company first reported outstanding first-pass assay results from the project. Vital Metals highlighted thick zones of mineralisation with total rare earth oxides (TREO) grades above 2%.
This was followed by a production update late last week.
Vital Metals noted that drilling results had intersected high-grade rare earth oxide (REO) mineralisation in the northern wall of the Nechalacho project.
As a result, the company highlighted the potential expansion of the pit beyond the existing mine plan.
At the time of writing, the Vital Metals share price is trading more than 5% higher at 6.1 cents.
Shares in the rare earth miner were up more than 8% earlier, having hit an intra-day high of 6.3 cents.
The post Here’s why the Vital Metals (ASX:VML) share price is flying today appeared first on The Motley Fool Australia.
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- Vital Metals (ASX:VML) share price leaps 6% on production update
- Here’s why the Vital Metals (ASX:VML) share price is flying higher today
Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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