A RARE earth and mineral sands company behind a “flagship” project at Goschen, near Swan Hill, has commenced trading on the Australian Securities Exchange (ASX).
VHM successfully completed the initial public offer (IPO) of 22.22 million fully paid ordinary shares at an issue price of $1.35 each to raise gross proceeds of $30 million (before costs).
IPO proceeds will be used to progress development activities for the company’s Goschen project, continued exploration activities for upstream projects, and will fund the company through to a final investment decision at Goschen in the second half of 2023.
The Goschen project is located in the “premier mineral sands province in north west Victoria” and has a substantial rare earth mineral deposit with an accompanying “world-class mineral sands resource” that “supports a life of mine in excess of 20 years”.
It will produce “critical minerals” (rare earth, zircon and titanium minerals) listed on the US and Australian critical mineral list which are important to the green energy transition as well as applications in defence.
Gannawarra Shire economic development manager Roger Griffiths previously told The Guardian that the project would provide a range of opportunities for the Gannawarra community with around 350 jobs boosting the local economy.
“It’s really up to the community and business sector to embrace this type of development as it has the ability to inject millions of dollars into the local economy,” he said.
“Along with major energy, industrial and agricultural projects, the Gannawarra is likely to experience significant growth over the next five years.”
The importance of the project was recognised by the Federal Government through the granting of major project status.
Meanwhile, the company has secured a memorandum of understanding with a subsidiary of Shenghe Resources Holding, a global leader in the processing and production of rare earth materials and related products, to enter into a binding dual product take or pay offtake agreement over an initial three-year term.
VHM managing director Graham Howard said the company was “delighted” to complete the ASX listing process and “commence our journey”.
“We are already at an advanced stage of development and have a clear pathway mapped to producer status with the team currently developing detailed engineering designs prior to construction of the Goschen project mine,” Mr Howard said.
“VHM presents a compelling opportunity with a globally significant project.
“The gap between the increasing demand for high-grade, ethically sourced rare earths and critical minerals from stable jurisdictions and declining supply is anticipated to widen as the world continues to transition to renewable and environmentally friendly products.
“VHM is well positioned to become a world-leading producer and supplier of critical minerals.”
