Victory Metals has signed a non-binding memorandum of understanding (MoU) with Sumitomo that could involve a long-term offtake partnership for the North Stanmore heavy rare earth project in Western Australia.
The agreement outlines Victory’s intention to supply 30 per cent of its annual production of mixed rare earth carbonate (MREC) to Sumitomo for an initial five-year term, with the option of a five-year extension.
Both companies aim to finalise a binding term sheet by October 31 2025, with pricing to reflect prevailing market rates, adjusted for total rare earth oxides (TREO) content.
Victory’s chief executive officer and executive director Brendan Clark said the company is extremely pleased to be partnering with Sumitomo Corporation, a globally recognised powerhouse with extensive industry expertise and a proven track record of securing critical mineral supplies.
“This agreement reflects the strategic value of the North Stanmore project and confirms the global significance of our unique heavy rare earth element composition within the North Stanmore clay deposit,” he said.
“The agreed terms enable Victory to accelerate project development, enhance financing options, and expand future processing capabilities.
“This partnership opens exciting new opportunities for Victory to integrate into the global rare earth supply chain and secure our place as a leading supplier in the energy transition and defence sectors.
“Victory looks forward to working with Sumitomo and both parties have agreed in good faith to enter into a binding off-take agreement.”
Clark said Sumitomo’s financial strength, global logistics expertise, and commitment to sustainable growth make it the ideal long-term partner for Victory Metals as it continues to progress its North Stanmore project towards development.”
Victory acknowledged the Western Australian Government and its Trade and Investment Office in Tokyo for fostering collaboration and facilitating productive discussions over the past six months.
The North Stanmore project, Australia’s largest indicated and inferred heavy rare earth clay resource, positions Victory Metals as a future leader in supplying critical minerals for the global technology, defence, and renewable energy sectors.
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