Victory Metals (ASX: VTM) ramped up activity at its flagship North Stanmore rare earths project in Western Australia during the three months to end June, announcing an enhanced mineral resource estimate and attracting US government interest.
In April, the company added 4,788 tonnes of gallium oxide to the new resource, which sits at 247.5 million tonnes at 520 parts per million of total rare earth oxide (inferred and indicated).
The presence of gallium strengthens Victory’s diversified critical minerals portfolio and positions it as an alternate supplier of metals currently under tight global supply due to Chinese export restrictions.
Declared Resource
Victory is also now one of the few Australian companies with a declared gallium oxide resource, which is recovered as a cost-effective by-product from North Stanmore with mixed rare earth carbonate (MREC).
North Stanmore includes several critical metals that are currently subject to Chinese export restrictions and all have been recovered during MREC metallurgical test work.
During the period, Victory received a letter of interest (LOI) from the Export-Import Bank of the United States (EXIM) for up to $292 million in project financing support for the development of North Stanmore and is now one of the few Australian critical minerals developers to have attracted high-level international government-backed support.
The funding enabled acceleration of discussions with US and international downstream partners, major original equipment manufacturers, and defence-aligned industries.
Additional Loan Facility
Victory received an additional US$10m unsecured loan facility from sovereign investment firm Sanabil Investments in June to fast-track North Stanmore.
Sanabil is a subsidiary of the Kingdom of Saudi Arabia’s Public Investment Fund and Victory will benefit from deep international networks, geopolitical reach and alignment with Saudi Arabia’s vision of becoming a global leader in critical minerals and industrial technology.
Victory is working with Sanabil to complete full-form loan documentation before funds are remitted.
Capital Raising
Victory raised $4m before costs in May through a strongly supported placement priced at $0.73 per share to professional and sophisticated investors, as well as directors and management of the company.
It comprised the issue of 5.4 million shares plus 1.8 million unlisted options and proceeds have been directed towards acceleration of a pre-feasibility study for North Stanmore.
As at 30 June, Victory had $6.46m in cash and $624,000 of pre-paid preliminary feasibility study expenditure at its disposal.
