The Vital Metals Limited (ASX: VML) share price is soaring higher today despite no news having been released by the company.

However, its stock is also flying off the shelves. Right now, nearly 30 million shares in Vital Metals have swapped hands today in just 613 transactions.

For context, over the last 4 weeks, an average session sees around 13.5 million Vital Metals shares traded.

At the time of writing, the Vital Metals share price is 6.1 cents, 8.93% higher than its previous closing price.

That's better than the performance of the broader market.

Vital Metals doesn't call the S&P/ASX 200 Index (ASX: XJO) home. However, it's worth noting that the index has fallen 0.8%. Meanwhile, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has gained 2.56%.

Let's take a closer look at the market's enthusiasm for the rare earth metals producer.  

A quick refresher

Vital Metals is a rare earths producer with one project in Canada and another in Tanzania.

The company began mining ore from its Canadian Nechalacho Project in June 2021.

Vital Metals also owns the Wigu Hill Project, located in Tanzania. The company's waiting for a mining licence to be issued for the project.

Vital Metals has also recently entered agreements to acquire 2 heavy metals projects, both located in Canada.

What's driving the Vital Metals share price today?

In short, there's no obvious reason why the market's interest in Vital Metals has increased today.

November has been quiet for the company. In fact, the last time the market heard from Vital Metals was on 29 October when it released its quarterly activities and cash flow report.

But whatever the reason, today's rally seems to have pulled the Vital Metals share price out of a 10-day long slump.

Right now, the company's shares are trading for 90% more than they were at the start of 2021. They've also gained 117% since this time last year.

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In morning trade, the rare earths explorer's shares are down 5% to 5.4 cents.

This means Vital Metals shares have now lost over 20% of their value since this time last month.

Why is the Vital Metals share price sinking?

There appear to have been a couple of catalyst for the decline in the Vital Metals share price.

One is weakness in the resources sector over the period in question. For example, Vital Metals isn't the only share falling materially.

The Lynas Rare Earths Ltd (ASX: LYC) share price has fallen 13% over the last couple of weeks.

In addition to this, profit taking could be weighing on the Vital Metals share price. After all, its shares are still up approximately 80% in 2021 even after recent declines.

Why are its shares up 80% this year?

Investors have been bidding the Vital Metals share price higher this year amid excitement around its Nechalacho project in Canada.

Earlier this year, the company received formal acceptance from its offtake partner, REEtec AS, for its rare earth carbonate sample.

At the time, Vital Metals' Managing Director, Geoff Atkins, commented: "Customer acceptance from REEtec is a key milestone for the development of the Nechalacho rare earth project and the construction of our Extraction Plant in Saskatoon."

"This achievement demonstrates that we have our processes at Nechalacho working correctly and we can proceed in line with our plans. With the satisfaction of this milestone, the procurement of equipment for our Rare Earth Extraction Plant in Saskatoon will proceed."

If all goes to plan, the company will be supplying REEtec with 1,000 tonnes of rare earth oxides (REO) per year over five years. After which, there is an option to increase the offtake volume by as much as 5,000 tonnes REO annually over 10 years.

However, with a market capitalisation of ~$250 million, judging by its recent share price performance, some investors may believe this is now priced into its shares.

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The Vital Metals Limited (ASX: VML) share price has soared into the green during today's session, extending its lengthy bull run.

At the market close, Vital Metals shares were exchanging hands at 7.4 cents apiece, an 12% gain from the open this morning.

Let's zoom in on the tailwinds behind the Vital Metals share price over the past week.

Quick recap on Vital Metals

Vital Metals is a minerals explorer with a focus on rare earths and gold prospects.

It has a geographical footprint in Australia, Canada and Burkina Faso in West Africa, although derives most of its revenue from Australia.

At the time of writing, Vital Metals has a market capitalisation of $307 million.

What's behind the Vital Metals share price this week

The Vital Metals share price has been a busy mover over the past week, climbing 37% into the green since last Friday's closing price.

On 9 August, the company announced its plans to expand into the US capital markets.

Vital advised it had engaged Ecoban Securities Corporation as investor relations and capital markets consultant.

As part of the planned listing, the company will issue 10 million three-year listed options to Ecoban's listing arm, Tectonic. Vital will deal with Tectonic directly under the agreement.

Recall that Tectonic also advised Vital Metals with a $42 million equity raise earlier in the year.

In addition, the rare earths miner placed its securities into a trading halt on 10 August. A day later, the company announced it would acquire Qubec Precious Metal Corporation's 68% interest in (the) Kipawa and 100% interest of (the) Zues heavy rare earth projects in Canada.

The transaction will occur for $8.7 million over the coming 5 years.

In its release, Vital Metals said the Kipawa and Zues sites complemented its light rare earths operations at Nechalocho, another of the company's rare earths sites in Canada.

In addition, the acquisition had "the potential to transform Vital into the only producer of both light and heavy rare earths in North America", according to the company.

Vital Metals share price snapshot

The Vital Metals share price has climbed 131% year to date, extending the previous 12 month's return of 311%.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s gain of around 25% over the past year.

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The Vital Metals Limited (ASX: VML) share price isn't going anywhere on Wednesday. This comes after the rare earths mining company requested a trading halt before market open.

As such, Vital Metals shares remain frozen at 6.1 cents apiece. It's worth noting that the company's shares have gained almost 25% in the past week.

Why are Vital Metals shares in a trading halt?

The Vital Metal share price was placed in a trading halt this morning pending an important acquisition announcement.

While no details have been given by the company, several media outlets have indicated what's happening behind the curtain.

According to the Australian Financial Review, Vital Metals is set to acquire two projects from Quebec Precious Metals Corporation. Reportedly, both parties have signed a binding term sheet involving the C$8 million (A$8.5 million) purchase.

The first takeover relates to the Kipawa Rare Earth project in which Vital Metals will buy a 68% stake. The remaining 32% interest is held by joint venture partner Investissement Quebec.

Meantime, the second investment is for a 100% interest in the Zeus Rare Earth project.

Both heavy rare earth projects are expected to complement Vital Metals' light rare earth operations at Nechalacho in Canada's Northwest Territories. This could potentially make the company the only producer of both heavy and light rare earth materials in North America.

Just last week, Vital Metals completed its first rare earths production at its Nechalacho project.

About the Vital Metals share price

Since this time last year, Vital Metals shares have risen sharply by more than 280%. In 2021 alone, the company's share price is up 90%, reflecting positive investor sentiment.

Vital Metals presides a market capitalisation of roughly $253.4 million with approximately 4.1 billion shares on its registry.

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The Vital Metals Limited (ASX: VML) share price has been busy this past week.

Shares in the rare earth miner have soared more than 30% since last Monday.

Vital Metals continued the positive momentum today, after releasing a promising update.

Here's what the company had to announce.

Vital Metals share price surges on US capital markets expansion

The Vital Metals share price has surged today after the company announced its intention to expand into US capital markets.

In its market update, the company informed shareholders that it has engaged a consulting and advisory service.

To that end, Vital Metals noted it has signed an agreement with Ecoban Securities Corporation, specifically with its listing arm Tectonic.

The agreement will see Tectonic serve as the company's North American investor relations and capital markets consultant and advisor.

Under the agreement, Tectonic will perform a range of services for the promotion and management of securities in Vital Metals.

Vital Metals informed investors that expansion into US capital markets follows the success of its operations at its Nechalacho rare earth project in Canada's Northwest Territories.

As part of the agreement, the company will issue 10,000,000 3-year unlisted options to Tectonic.

These options will have an exercise price of $0.07 and are subject to various vesting conditions being met.

Tectonic will be familiar to many Vital Metals shareholders. The company assisted the rare earth miner with its $43 million capital raise earlier this year.

More on Vital Metals

Vital Metals is a mining explorer and developer focusing on rare earths, technology metals and gold projects. The company's flagship projects include the Nechalacho Rare Earth Project and its Wigu Hill project in Tanzania.

Last week, Vital Metals provided a couple of updates on its Nechalacho project.

Last Tuesday, the company first reported outstanding first-pass assay results from the project. Vital Metals highlighted thick zones of mineralisation with total rare earth oxides (TREO) grades above 2%.

This was followed by a production update late last week.

Vital Metals noted that drilling results had intersected high-grade rare earth oxide (REO) mineralisation in the northern wall of the Nechalacho project.

As a result, the company highlighted the potential expansion of the pit beyond the existing mine plan.

At the time of writing, the Vital Metals share price is trading more than 5% higher at 6.1 cents.

Shares in the rare earth miner were up more than 8% earlier, having hit an intra-day high of 6.3 cents.

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The Vital Metals Limited (ASX: VML) share price has leapt higher this morning after a bumper production update from the rare earths producer.

At the time of writing, the Vital Metals share price is up 5.56%, trading at 5.7 cents.

Why is the Vital Metals share price climbing higher?

Shares in the Aussie-Canadian miner shot more than 9% higher at Friday's open before paring back some of those gains. That share price swing comes after Vital Metals provided an update on its Nechalacho rare earths project in Northwest Territories, Canada.

The ASX company has now completed its first month of rare earths production at the site. Vital Metals Managing Director Geoff Atkins said, "We are really pleased with the way our operations are ramping up at Nechalacho, and the exciting developments we've made with ore sorter operation and mineralisation at the North T pit wall during July."

Notably, Vital Metals said mining at the pit has intersected high-grade rare earth oxide (REO) mineralisation in the northern edge of the wall. The company said this new material could allow Vital to potentially expand the North T pit beyond the existing mine plan.

Today's update impressed investors who have snapped up shares. The Vital Metals share price leapt more than 5% at the start of trade following the news.

Vital Metals said its ore sorter has exceeded expectations thus far. The Nechalacho ore sorter commenced processing in July with high grade product output better than expected.

The production update is the second positive update from Vital Metals this week. Outstanding first-pass assay results from the Nechalacho project saw the ASX share jump higher on Tuesday. That included news that its Tardiff Zone 2 and 3 could significantly extend the project's mine life.

These recent gains mean that the Vital Metals share price has now climbed 90% higher in 2021 with a current market capitalisation in excess of $250 million.

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We look at the ASX resource share's latest rare earths drilling results below.

What assay results did Vital Metals report?

Vital Metals shares are gaining after the company reported outstanding first-pass assay results at its 100% owned Nechalacho Rare Earth Project in Canada.

According to the release, the results from its Tardiff Zones 2 and 3 could significantly extend the project's mine life.

Of the 10 holes it drilled across Tardiff Zones 2 and 3, Vital said every one hit extensive mineralisation. Those included thick zones with total rare earth oxides (TREO) grades above 2%. The best results highlighted from Zone included:

• 1 metres at 3.03% TREO
• 0 metres at 2.05% TREO

Vital Metals plans additional drilling to fully define the Tardiff zones, which remain open in all directions.

Commenting on the results, Vital Metals managing director Geoff Atkins said:

Drilling results from Tardiff Zones 2 and 3 have shown the potential for Nechalacho to be a much larger rare earths operation than we anticipated. We completed the drilling at Tardiff as part of defining a Mine Plan for Stage 2 operations at Nechalacho, which will initially focus on Tardiff Zone 1.

But, with the results showing mineralisation in both Zone 2 and 3 remaining open, we will plan further drilling in these areas over the next year to get a better understanding of the mineralisation and determine if the three zones are connected.

The company reported it is commencing Stage 1 rare earth production at Nechalacho via ore sorting. It intends to mine its North T deposit in Stage 1 and focus on the Tardiff deposit in Stage 2, with plans to construct a large-scale rare earth mining and processing operation.

"With the commencement of production at Nechalacho, we are excited about the future of this project," Atkins said. He added that it has the potential to grow into "one of the world's best light rare earth projects".

Vital Metals share price snapshot

Over the past 12 months the Vital Metals share price is up an impressive 400%. By comparison the All Ordinaries Index (ASX: XAO) has gained 28% over that same time.

Year-to-date the Vital Metals share price is up 67%.

The post Here's why the Vital Metals (ASX:VML) share price is flying higher today appeared first on The Motley Fool Australia.

The Vital Metals Limited (ASX: VML) share price was going gangbusters this morning, flying more than 9% higher in intraday trade.

At the time of writing, the Vital metals share price has lost some of that ground and is trading at 5.4 cents, up 3.85%. Even at this lower price, shares in the mineral exploration company have surged more than 17% in the last 3 trading sessions.

Let's take a look at what appears to be fuelling the Vital Metals share price in July.

What's happening with Vital Metals?

The Vital Metals share price received a boost yesterday after the company provided an update on activities at its Nechalacho project in Canada.

According to the announcement, the company has started rare earth production starting with ore crushing.  

Vital Metals noted that its mining contractor Nahanni Construction Ltd completed the first blast of ore at Nechalacho's North T Zone on 28 June.  The company then started production, with first ore crushed at Nechalacho on 30 June 2021.

Vital Metals managing director Geoff Atkins noted that the company's crews worked hard on-site through June to accelerate mining activities. In addition, management said that crushing and ore sorting equipment had been installed and was ready to start commissioning.

Vital Metals aims to ramp up crushing and ore sorting at Nachalacho, with full production rates expected to be achieved this month.

Snapshot of the Vital Metals share price

Vital Metals is a mining explorer and developer focusing on rare earths, technology metals and gold projects. The company's flagship projects include the Nechalacho Rare Earth Project in Canada and Wigu Hill project in Tanzania.

The Vital Metals share price has had a tumultuous year thus far.

Shares in the company started the year at around 3 cents and bolted to a high of 9 cents in mid-March. Since then, the Vital Metals share price has waned, but still remains more than 70% higher for the year.

The post Here's why the Vital Metals (ASX:VML) share price is flying higher today appeared first on The Motley Fool Australia.

The Vital Metals Limited (ASX: VML) share price is gaining in late morning trade, up 4%.

Below we look at the latest announcement from the ASX resource share and rare earths explorer.

What did the company report?

Vital Metals' share price is moving higher after the company reported it received formal acceptance from its offtake partner, REEtec AS, for its rare earth carbonate sample.

The 12-kilogram rare earth carbonate sample was produced at Vital Metal's Nechalacho project in Canada in March this year.

Commenting on the development, Vital Metals' Managing Director Geoff Atkins said:

Customer acceptance from REEtec is a key milestone for the development of the Nechalacho rare earth project and the construction of our Extraction Plant in Saskatoon. This achievement demonstrates that we have our processes at Nechalacho working correctly and we can proceed in line with our plans.

With the satisfaction of this milestone, the procurement of equipment for our Rare Earth Extraction Plant in Saskatoon will proceed.

Vital Metals executed a definitive Offtake Agreement with REEtec on 2 February. That stipulated that Vital Metals will provide REEtec with 1,000 tonnes of rare earth oxides (REO) per year over five years. Both REEtec and Vital Metals have the option to increase the offtake volume by as much as 5,000 tonnes REO annually over 10 years.

The company said it will commence production via ore sorting in June. It is on track to become only the second rare earth producer in North America and the first in Canada.

Vital Metals share price snap shot

Vital Metals' shareholders have enjoyed a very strong year. Demand for rare earths, critical to most modern tech devices, sourced outside of China is growing rapidly. This has helped drive its shares up 480% over the past 12 months. Over that same time, the All Ordinaries Index (ASX: XAO) gained 25%.

Year-to-date, the Vital Metals share price has continued to outperform, up 93% so far in 2021.

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Vital Metals Limited (ASX:VML) shares are sliding lower today after the company announced the successful completion of an institutional share placement to fund works at its rare earth mine in Canada.

At the time of writing, the Vital Metals share price is trading 5% lower at 7.6 cents. The rare earth mining company's placement raised $43 million, issuing 661.5 million new shares at 6.5 cents each.

For context, the All Ordinaries Index (ASX: XAO) is also slumping today, down 0.79% for the day so far.

Let's take a closer look at Vital Metals' announcement this morning.

Canada's first rare earth producer

Vital Metals announced this morning that after a successful share placement, it will begin works at its Nechalacho rare earths project this month.

The project is Canada's first rare earths mining operation. Vital Metals hopes to become the largest independent supplier of clean mixed rare earth feedstock outside of China.

The company claims Nechalacho is one of the highest grade rare earth deposits on earth.

Beyond allowing the commencement of works, the capital raised will also fund construction of an offsite extraction plant and the processing of mining minerals. Additionally, some will go towards drilling to define a plan for stage 2 of the project.

Vital Metals other project, Wigu Hill, will also benefit from the raised capital. Part of it will go towards drilling, sampling and testing at the site.

Commentary from management

Vital Metals managing director, Geoff Atkins, said the company is pleased to receive such strong support:

This support validates our strategy to produce rare earths for a globally diversified supply chain. As demand for critical minerals including rare earths continues to grow, our Canadian based project is positioned to supply customers in North America, Europe and Asia.

This placement ensures Stage 1 operations at Nechalacho are fully funded. We are excited to complete this milestone to allow mining operations to commence as we transition to a rare earth producer next quarter.

Vital Metals share price snapshot

This morning, the Vital Metals share price opened 7.5% lower than Tuesday's close before partially recovering to its current level. This came after the company's shares spent Wednesday and Thursday in a trading halt pending the release of further information on the capital raise.

The company's share price is still up by 147% year to date, having started the year trading at 3 cents. It's also up 640% over the last 12 months.

Vital Metals has a market capitalisation of almost $214 million with approximately 2.6 billion shares outstanding.

The post Vital Metals (ASX:VML) share price falls following placement appeared first on The Motley Fool Australia.

Vital Metals Limited (ASX: VML) shares have been placed in a trading halt on Thursday, pending an announcement of a capital raise. According to its website, the company is on the verge of transitioning from a rare earths explorer to a producer.

The Vital Metals share price has soared from the 1 cent range twelve months ago to a close of 8 cents on Wednesday. 

Transformational year for Vital Metals  

Vital Metals has achieved a number of significant milestones during its journey from explorer to producer. 

On 22 September 2020, the company signed a binding term sheet to negotiate definitive agreements for the construction and operation of a rare earth extraction plant to produce a mixed rare earth carbonate. 

By 22 December 2020, Vital Metals had entered into a binding term sheet with REEtec for an annual volume of 1,000 tonnes of rare earth oxide over five years. Both parties have an option to increase this offtake volume up to 5,000 tonnes over ten years. 

Vital's strategy is to develop its flagship Nechalacho project in two stages. Stage one of the operations focuses on the current development and construction of the site to begin producing rare earth oxide, while stage two aims to expand its current resource and project size. The company announced that drilling for stage two had commenced on 16 February 2021. 

By 26 February, Vital announced it was on track to commence rare earth production at its Nechalacho project by Q2 CY21. This would make Vital the first rare earths producer in Canada and only the second producer in North America. 

Trading halt for capital raise 

Vital Metals shares have entered a trading halt on Thursday regarding a capital raise. The company anticipates that it will resume trading by Friday 19 March.  

In the company's half-year accounts for 31 December 2020, it had $6 million in cash and cash equivalents and delivered a net loss of $4 million. 

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Vital Metals Limited (ASX: VML) share price was up 24.6% today – hitting a 5-year record of 8.6 cents in morning trade. The rise coming after the company announced the production of a rare earth carbonate.

As of writing, shares had slightly retreated to sit at 7.1 cents each. This is still nearly 16% above yesterday's close of 6.9 cents per share. In comparison, the S&P/ASX All Ordinaries Index is up only 0.6%.

Let's take a closer look at what's affecting the company's share price.

What did Vital Metals announce and how is it affecting its share price?

In a statement released to the ASX, Vital Metals declared it had produced a "12kg sample of rare earth carbonate…". Vital Metals produced the sample at its Nechalacho project in Canada. The company expects rare earth mineral production at the site to begin in Q4 of FY21.

Construction at the Nechalacho project should begin by the end of March.

Vital Metals also announced rare earth expert, George Bauk, who was only recently appointed as an advisor, would be leaving the company. Bauk stated that:

It is with great disappointment that due to unforeseen circumstances I am no longer able to fulfil the role of Strategic Advisor to Vital. During my short time working with the Vital team, I have been extremely impressed by the quality of the Nechalacho project, the management and Board of Vital.

He added:

My time with the team has left me in no doubt that Vital are well on track to successfully bringing the Nechalacho project into production in 2021 to become Canada's first rare earth operation.

What are rare earth elements?

According to Geoscience Australia, rare earth elements (RRE) is a collective term for 15 different elements. Despite the name, they are not particularly rare. They are called rare because the elements are usually concentrated in specific parts of the earth's crust. RRE is used in a range of products, including magnets, batteries, and fibre optic cables.

Neodymium, an RRE found at the Nechalacho Project, is trading at USD 885,000 a tonne – up 24.7% on last month.

Vital Metals share price snapshot

This time last year, shares in Vital Metals were trading at 0.8 cents each. An investor would be sitting on a generous 690% return on investment if they bought into the company 12 months ago.

The market capitalisation of Vital Metals is $197.9 million.

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