Vital Metals filed bankruptcy for its subsidiary Vital Metals Canada operating a rare earth processing facility in Saskatoon, Canada.

After evaluating rising costs for the construction of commercial-scale facilities and the falling prices of rare earths in 2023, Vital Metals filed for bankruptcy for its Canadian-based subsidiary Vital Metals Canada. The subsidiary was developing the Saskatoon rare earth processing facility in Saskatchewan, though construction at the site had been paused since April 2023 while an assessment of project feasibility was undertaken. 

The supply agreement signed with REEtec in Norway for roughly 2,000t of cerium-reduced mixed rare earth concentrate will also be terminated, with the last day of the contract being 26^th December 2023.   

The bankruptcy does not impact Vital Metals other subsidiary Cheetah Resources, developing the Tardiff project at the Nechalacho deposit. In September, Vital announced it had secured a A$2M (US$1.27M) short-term loan agreement with Malekula Projects, INVL Group and Treasury Services Group to fund the continued development of Tardiff. A scoping study is still scheduled for release covering the Tardiff project in H1 2024, though termination of the Saskatoon facility will mean Vital will have to find a third-party purchaser of mineral concentrates from the Tardiff project.