$11.5M Placement Fuels Victory Metals’ Push into Ultra-Heavy Rare Earths
Victory Metals secures $11.5 million through a strategic placement to accelerate drilling and development at its North Stanmore heavy rare earth project, reinforcing its position as Australia’s leading rare earths explorer.
- Institutional placement raises $11.5 million at $1.35 per share
- Funds earmarked for targeted drilling of ultra-high heavy rare earth zones
- Advancement of scandium oxide production and feasibility studies
- Victory declines Sanabil loan, pursuing US$190 million US government funding
- North Stanmore remains Australia’s largest indicated heavy rare earth clay resource
Strategic Capital Raise to Accelerate Rare Earth Development
Victory Metals Limited (ASX, VTM) has successfully secured $11.5 million through a well-supported institutional placement, marking a significant step forward in the development of its flagship North Stanmore project in Western Australia. The placement, priced at $1.35 per share, a 15% discount to the recent volume-weighted average price, will see approximately 8.5 million new shares issued to professional and sophisticated investors.
The capital injection is earmarked for targeted drilling of ultra-high heavy rare earth zones, which boast concentrations of up to 83% heavy rare earth oxides relative to total rare earth oxides. This drilling will focus on expanding and upgrading the Mineral Resource Estimate (MRE) around the North Stanmore area, which already stands as Australia’s largest indicated clay heavy rare earth resource.
Advancing Production and Feasibility
Beyond exploration, Victory Metals plans to advance scandium oxide production, a critical component in high-performance alloys, and push forward with feasibility studies to refine project economics and development pathways. These efforts underscore the company’s commitment to unlocking the full potential of North Stanmore, positioning it as a key supplier of critical materials essential for emerging technologies and clean energy applications.
Bell Potter Securities Limited acted as sole lead manager and bookrunner for the placement, receiving a cash fee and broker options as part of the arrangement. The new shares are expected to commence trading on the ASX from September 1, 2025.
Funding Strategy and Market Position
Notably, Victory Metals has opted not to proceed with a previously proposed loan from Sanabil Investments LLC, citing exclusivity terms that did not align with the company’s broader funding strategy. Instead, Victory is advancing discussions with strategic and government partners, including leveraging a US$190 million Letter of Interest from the US Export-Import Bank. This pivot highlights the company’s proactive approach to securing diverse and potentially more favourable funding sources.
Victory’s CEO Brendan Clark emphasized the importance of this capital raise in maintaining momentum at North Stanmore, which is rapidly emerging as one of the world’s most advanced heavy rare earth clay projects. The recent MRE update, totaling over 320 million tonnes with a strong indicated resource classification, reinforces the project’s strategic significance within Australia’s critical minerals landscape.
Looking Ahead
As Victory Metals moves forward, the focus will be on translating exploration success into tangible production milestones while navigating the complexities of project financing. The company’s ability to attract institutional support and government backing bodes well for its ambitions, but the path to commercialisation will require continued operational and financial discipline.
Bottom Line?
Victory Metals’ latest capital raise sets the stage for a pivotal phase in developing Australia’s heavy rare earth future.
Questions in the middle?
- Will targeted drilling confirm ultra-high heavy rare earth zones to justify accelerated development?
- How will Victory balance government funding opportunities with private investment to optimise project financing?
- What are the timelines and expected outcomes for scandium oxide production and feasibility study completion?
