Victory Metals Secures Sumitomo MOU and Boosts Rare Earth Resource at North Stanmore

Strategic Partnership with Sumitomo Corporation

Victory Metals (ASX: VTM) has taken a significant step forward in its development of the North Stanmore Heavy Rare Earth Elements (HREE) Project by signing a strategic non-binding Memorandum of Understanding (MOU) with Sumitomo Corporation, a Fortune Global 500 company. This agreement targets an initial five-year offtake arrangement, with a potential five-year extension, under which Victory aims to supply Sumitomo with 30% of its annual Mixed Rare Earth Carbonate (MREC) production.

The partnership signals strong confidence from Sumitomo in the quality and scalability of Victory's project, offering not only a secure market for its rare earth products but also potential avenues for investment, technological collaboration, and enhanced project development support. The involvement of the Western Australian Government's Trade and Investment Office in Tokyo underscores the strategic importance of this alliance in positioning Australia as a reliable supplier in the global critical minerals supply chain.

Robust Resource Upgrade Reinforces Project Potential

Victory Metals announced a substantial upgrade to its Mineral Resource Estimate (MRE) for North Stanmore, now totaling 247.5 million dry metric tonnes at 520 ppm Total Rare Earth Oxide (TREO) plus Scandium Oxide (Sc2O3), with 71% classified in the Indicated category. This upgrade includes a high-grade near-surface domain of 53 million tonnes at 1,012 ppm TREO plus Scandium, a marked improvement from the previous July 2024 estimate.

The resource's heavy rare earth oxide (HREO) content remains impressively high, with an HREO to TREO ratio of 38% in the Indicated category, underscoring North Stanmore's strategic value in supplying critical elements like dysprosium and terbium. These elements are vital for advanced technologies, including electric vehicle motors, renewable energy systems, and defence applications.

Exploration Success and Project Scale

Recent aircore drilling has confirmed a strike length extension to 13.5 kilometres, with assay results revealing exceptional grades of rare earth oxides, including TREO concentrations up to 3,174 ppm and HREO to TREO ratios reaching 75%. These findings not only validate the resource upgrade but also provide a strong foundation for ongoing scoping studies and future development phases.

Victory's focus on scandium, a metal critical for aerospace, automotive, and additive manufacturing sectors, further diversifies the project's strategic importance. The North Stanmore deposit's clay-hosted nature offers environmental advantages over traditional hard rock mining, aligning with global sustainability trends.

Financial Position and Outlook

As at 31 December 2024, Victory Metals reported a healthy cash balance of $4.85 million, supported by recent option conversions and interest income. Exploration expenditure for the quarter was $736,000, reflecting ongoing commitment to advancing North Stanmore. Corporate and administrative costs remained controlled, with related party payments disclosed transparently.

The strategic MOU with Sumitomo is expected to accelerate project development timelines, enhance financing options, and expand processing capabilities. Victory Metals is well-positioned to capitalize on rising global demand for heavy rare earths and scandium, driven by the energy transition and defence sector needs.

Positioning for the Future

Victory Metals’ recent developments mark a pivotal moment in its journey to becoming a leading supplier of critical rare earth elements from Australia. The combination of a robust resource base, strategic partnerships, and a clear focus on sustainability and market integration sets the stage for the company to play a significant role in global supply chains amid increasing geopolitical and supply security concerns.