How VHM’s Mitsui Offtake and US$200M EXIM Interest Propel Goschen Forward

Strategic Offtake and Financing Agreements

VHM Limited, an Australian rare earths and mineral sands developer, has made substantial progress on its flagship Goschen Project in northwest Victoria during the quarter ending 30 September 2025. Central to this advancement is a Letter of Interest (LOI) with Japanese conglomerate Mitsui & Co., Ltd., establishing a framework for Mitsui to acquire 40% of the Heavy Mineral Concentrate (HMC) produced. This agreement not only secures a key customer but also opens the door for Mitsui to provide trade finance facilities, subject to due diligence, potentially easing VHM's path to production.

Adding further momentum, VHM announced a subsequent LOI from the Export-Import Bank of the United States (EXIM) for up to US$200 million in project financing. This financing package, with a repayment term of up to 12 years, aligns with EXIM’s Supply Chain Resiliency Initiative, underscoring the strategic importance of the Goschen Project in supplying critical minerals to U.S. markets. The involvement of EXIM also reflects geopolitical considerations, as the project may benefit from programs aimed at enhancing U.S. competitiveness in rare earths, especially amid tightening export controls from China.

Regulatory Milestones and Project Development

On the regulatory front, VHM achieved a major milestone by securing formal approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). This endorsement follows the successful completion of the Environmental Effects Statement and the granting of the Mining Licence by Resources Victoria, effectively clearing the way for the project to advance into final design, construction, and operational readiness phases.

However, some delays have been noted in the progression of the Cultural Heritage Management Plan and Work Plan approvals, now expected in the fourth quarter of 2025. These delays have pushed the anticipated Final Investment Decision (FID) to the first half of 2026, reflecting a cautious approach amid complex regulatory and market conditions.

Resource and Exploration Upside

VHM updated its Mineral Resource and Ore Reserve estimates post-quarter, confirming the Goschen Project as one of Australia’s largest undeveloped mineral sands and rare earths deposits. The total Mineral Resources stand at approximately 890 million tonnes at 2.9% total heavy minerals, while Ore Reserves are estimated at 220 million tonnes at 3.6% total heavy minerals. Notably, the current mine plan exploits less than half of the Ore Reserves and only a fraction of the total Mineral Resources, indicating significant potential for future expansion.

Further exploration target updates suggest a substantial upside, with estimated tonnage ranging from 1.5 to 4 billion tonnes and valuable heavy mineral content between 30 and 70 million tonnes. The assemblage includes critical minerals such as Zircon, Ilmenite, Rutile, and rare earth-bearing Monazite and Xenotime, reinforcing the project's strategic importance in the global supply chain.

Leadership and Financial Position

In tandem with operational progress, VHM announced key executive appointments effective 1 October 2025, with Andrew King stepping in as Chief Executive Officer and Ben McCormick as Chief Financial Officer. These leadership changes aim to steer the company through the critical development phase ahead.

Financially, the company reported a cash balance of approximately A$5 million at quarter end, with ongoing expenditure focused on advancing approvals and engineering work. While the cash runway is limited to under two quarters at current burn rates, VHM expresses confidence in its ability to raise additional capital, supported by strong engagement with offtake partners and government agencies.

Looking Ahead

VHM’s pathway to production is now clearly defined but contingent on final regulatory approvals and successful closure of financing arrangements. The geopolitical landscape, particularly U.S.-China trade dynamics and rare earth export controls, adds complexity but also underscores the strategic value of the Goschen Project. Market watchers will be keenly observing the company’s ability to convert Letters of Interest into binding agreements and to make the Final Investment Decision in the coming months.