VHM Limited has made significant strides in developing its Goschen Rare Earths and Mineral Sands Project, securing substantial funding and critical regulatory approvals while expanding its resource base.
- US$200 million Letter of Interest from US Export-Import Bank
- A$75 million Letter of Support from Export Finance Australia
- Termination of Shenghe Resources offtake agreement to pursue broader options
- Key approvals secured including Cultural Heritage Management Plan and Work Plan
- Successful $11.6 million capital raise completed
Funding Milestones Signal Strong Backing
VHM Limited has secured a Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to US$200 million in project financing, complemented by a A$75 million Letter of Support from Export Finance Australia (EFA). This combined financial endorsement underscores the Goschen Project’s strategic importance in the global rare earths and mineral sands market, particularly under initiatives aimed at supply chain resilience and critical minerals diversification.
Strategic Shift in Offtake Agreements
In a notable strategic move, VHM has terminated its previously announced offtake agreement with Shenghe Resources. This decision reflects the company’s intent to maximise long-term value by engaging with a wider range of global partners, responding to increasing inbound interest for offtake from the Goschen Project. This pivot may open doors to more favourable commercial terms and diversified market access.
Regulatory Approvals Clear Path to Development
During the quarter, VHM secured critical regulatory milestones including approval of the Cultural Heritage Management Plan and the Work Plan by the Victorian Government. These approvals satisfy key legislative requirements and represent the final mining approval needed before the company can proceed to a Final Investment Decision (FID), anticipated in the first half of 2026. This progress significantly reduces regulatory risk and accelerates the project’s development timeline.
Resource and Exploration Updates Highlight Growth Potential
VHM updated its Mineral Resource and Ore Reserve estimates, confirming the Goschen Project as one of Australia’s largest undeveloped mineral sands and rare earths deposits. The current mine plan exploits less than half of the ore reserves and a fraction of the total mineral resources, indicating substantial upside potential. Additionally, a major expansion of the Exploration Target was announced, estimating between 1.5 to 4 billion tonnes of material with significant heavy mineral content, reinforcing the project’s scale and strategic value.
Capital Raising Supports Next Development Phase
The company successfully completed a fully underwritten placement and share purchase plan, raising a total of $11.6 million before costs. These funds will support ongoing engineering, procurement, and land acquisition activities as VHM advances towards its FID. With a cash position of $13.2 million at quarter end, the company appears well-funded to navigate the next critical stages of project development.
Bottom Line?
With robust funding and regulatory progress, VHM is poised to unlock the full potential of its Goschen Project, though new offtake partnerships will be key to sustaining momentum.
Questions in the middle?
- Which global partners will VHM engage with following the termination of the Shenghe agreement?
- How will the combined US and Australian financing shape the project’s development timeline and cost structure?
- What are the implications of the expanded exploration target for long-term production and market positioning?