The Vital Metals Limited (ASX: VML) share price has soared into the green during today’s session, extending its lengthy bull run.
At the market close, Vital Metals shares were exchanging hands at 7.4 cents apiece, an 12% gain from the open this morning.
Let’s zoom in on the tailwinds behind the Vital Metals share price over the past week.
Quick recap on Vital Metals
Vital Metals is a minerals explorer with a focus on rare earths and gold prospects.
It has a geographical footprint in Australia, Canada and Burkina Faso in West Africa, although derives most of its revenue from Australia.
At the time of writing, Vital Metals has a market capitalisation of $307 million.
What’s behind the Vital Metals share price this week
The Vital Metals share price has been a busy mover over the past week, climbing 37% into the green since last Friday’s closing price.
On 9 August, the company announced its plans to expand into the US capital markets.
Vital advised it had engaged Ecoban Securities Corporation as investor relations and capital markets consultant.
As part of the planned listing, the company will issue 10 million three-year listed options to Ecoban’s listing arm, Tectonic. Vital will deal with Tectonic directly under the agreement.
Recall that Tectonic also advised Vital Metals with a $42 million equity raise earlier in the year.
In addition, the rare earths miner placed its securities into a trading halt on 10 August. A day later, the company announced it would acquire Qubec Precious Metal Corporation’s 68% interest in (the) Kipawa and 100% interest of (the) Zues heavy rare earth projects in Canada.
The transaction will occur for $8.7 million over the coming 5 years.
In its release, Vital Metals said the Kipawa and Zues sites complemented its light rare earths operations at Nechalocho, another of the company’s rare earths sites in Canada.
In addition, the acquisition had “the potential to transform Vital into the only producer of both light and heavy rare earths in North America”, according to the company.
Vital Metals share price snapshot
The Vital Metals share price has climbed 131% year to date, extending the previous 12 month’s return of 311%.
These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s gain of around 25% over the past year.
The post Why the Vital Metals (ASX:VML) share price is up 37% in a week appeared first on The Motley Fool Australia.
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More reading
- Why is the Vital Metals (ASX:VML) share price is in a trading halt today?
- Here’s why the Vital Metals (ASX:VML) share price is flying today
- 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
The author Zach Bristow has no positions 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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