Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
The companies announced the verified discovery of one of the largest palladium mineral systems in Australia.
Chinese rare earth miner Shenghe Resources is acquiring new shares in Vital Metals (ASX: VML) for an initial A$5.9 million ($3.8m), allowing the Australian miner move forward with development at its Nechalacho project in Canada’s Northwest Territories.
Shenghe has agreed to subscribe for 9.99% of the issued share capital in Vital at A$0.01 a share to raise A$5.9 million ($3.8m). The company could subscribe for a further 492 million shares at A$0.015 a share, which if exercised would raise about A$8.9 million ($5.7m).
As part of the agreement, Shenghe is set to acquire a 50% interest in Vital’s Wigu Hill rare earths project in Tanzania.
The investment will help Vital to set up a new leadership team and to explore “the development of an integrated North American supply chain for future rare earth production at Nechalacho,” Vital said in the statement.
The Australian-based junior, which is Canada’s first – and North America’s second – rare earths producer, recently placed its processing arm into bankruptcy, and began liquidating assets related to its partially completed Saskatoon plant.
Shenghe’s cash injection clashes with Vital’s initial claim of becoming a key actor in the emerging North American critical minerals supply chain to rival China.
