VHM Secures Iluka Partnership and $40 Million Funding for Goschen Project

Iluka Partnership Secures Long-Term Revenue and Funding

VHM Limited (ASX:VHM) has taken a significant stride towards finalising the development of its Goschen Rare Earths and Mineral Sands Project by locking in a strategic partnership with Iluka Resources. This agreement includes a binding offtake for 100% of Goschen’s rare earth concentrate (REC) production over the life of the current mining licence, spanning 20 years at 5Mtpa, and a A$40 million convertible note funding package.

The deal not only provides VHM with a bankable revenue stream but also aligns the project with Australia’s Critical Minerals Strategy by feeding Iluka’s Eneabba Rare Earths Refinery, the country’s first operational rare earth oxide refinery. This partnership marks a pivotal milestone, enhancing the project’s credit appeal and de-risking its path to a Final Investment Decision (FID).

Project Execution Accelerates with Market Retender and Approvals

Throughout the quarter, VHM completed a comprehensive market retender of all major project workstreams, including capital and operating costs, refining the fully integrated project schedule. This retendering positions the company to award contracts swiftly post-FID, aiming to compress development timelines and improve execution certainty.

Regulatory progress continues to bolster the project’s readiness. All major approvals are secured, including mining licences, environmental management plans, and native vegetation offsets, effectively removing significant regulatory hurdles. These achievements reduce project risk and support financing discussions with export credit agencies, including Export Finance Australia.

Drilling Program Enhances Resource Confidence and Bulk Sampling

VHM has commenced analysis of drilling undertaken earlier this year within the Goschen mining licence area. The program’s results are expected to improve resource confidence and provide bulk samples crucial for process validation and offtake partner evaluations. These bulk samples have already undergone test work, reinforcing confidence in the processing flowsheet design.

Capital Raise Supports Engineering and Procurement

In April 2026, VHM successfully completed a fully underwritten placement raising A$5 million at $0.26 per share. The proceeds are earmarked for early engineering works, long-lead procurement, and advancing financing arrangements ahead of FID. At the quarter’s end, the company held $13.1 million in cash, providing a solid financial footing for ongoing development activities.

Community Engagement and Corporate Updates

VHM’s board conducted an on-site visit to the Goschen Project and local region, reinforcing the company’s commitment to community partnership. Ongoing collaboration with local disability service provider VIVID continues to support drilling and sample processing efforts. The company also hosted well-attended community information sessions to maintain transparent communication with stakeholders.

On the corporate front, Bronagh Freeman was appointed company secretary in May 2026, ensuring continuity in governance functions following a provider reassignment.