QPM seeks new buyer for rare earths projects
Gold exploration company Quebec Precious Metals (QPM) will continue the sales process for its rare earth projects in Canada, after Vital Metals has advised the company that it will not proceed with the acquisition.
The assets include a 68% interest in the the Kipawa and 100% interest in the Zeus heavy rare earth projects in Quebec.
"We believe that significant value can be realised for our shareholders through the monetisation of the Kipawa and Zeus projects. With the current market conditions for rare earth projects, we expect that we will receive further expressions of interest for these projects,” said CEO Normand Champigny stated.
Vital's new management informed QPM that it has not been satisfied with the results of its due diligence on the projects, in particular the ability to progress its understanding of the Kipawa (Kebaowek) First Nation's position on the projects and that is also not satisfied with the technical due diligence completed by former management.
ASX-listed Vital has informed QPM of its decision to terminate the agreement after not being able to agree on terms to extend the due diligence period to enable Vital to further reduce risk.
Vital also felt that proceeding with the acquisition of Kipawa and Zeus would have diverted funds from its current high-priority Nechalacho project construction and that the development of the QPM projects would not occur for several years. Vital is focusing on its Saskatoon rare earths production facility and development of the Tardiff deposit at Nechalacho in NWT, which will consume all resources in the short to medium term.
QPM has a large land position in the Eeyou Istchee James Bay territory near Newmont’s Éléonore gold mine. QPM's flagship project is the Sakami project with significant grades and well-defined drill-ready targets. QPM's goal is to rapidly explore the Sakami project and advance to the mineral resource estimate stage.
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