Victory Metals has secured a mining lease covering almost 2,006 hectares at its North Stanmore heavy rare earth project in Western Australia, marking a key step towards development of the project.
Mining Lease M20/564 was granted by the Western Australian Department of Mines, Petroleum and Exploration earlier in September, securing mining tenure over the project area.
Victory said the grant reduced uncertainty around an important part of the development pathway and followed the recent release of its pre-feasibility study, maiden ore reserve and updated mineral resource estimate.
The lease follows an agreement with the Wajarri Yamaji Aboriginal Corporation, which supported the native title process associated with the mining lease application.
Victory chief executive officer and executive director Brendan Clark said securing the tenure provided a stronger foundation for the next stage of development.
“Securing mining tenure removes a key hurdle from the development pathway. It gives us a stronger foundation as we advance the technical, commercial and financing work required to deliver the Project,” Clark said.
The mining lease represents the full replacement of six existing prospecting licences and the partial replacement of four other tenements, meaning Victory’s overall footprint in the area has not changed.
The grant follows the commissioning of Victory’s Perth pilot plant and production of rare earth mineral concentrate, which the company said provided a basis for further technical evaluation of its proposed development strategy.
Victory said the mining lease would also support discussions with potential offtake customers, strategic investors and project financiers.
The company previously received a non-binding Letter of Interest from the Export-Import Bank of the United States for up to $US190 million ($265 million) in potential project financing.
Victory said any financing commitment remained subject to due diligence, Export-Import Bank policies, legal and eligibility requirements and final approval.
Clark said the company’s objective was to establish North Stanmore as a new Australian source of heavy rare earths.
“This grant is a tangible step towards that objective and strengthens our position as we engage with potential customers, strategic partners and financiers,” he said.
Victory will now progress technical studies, remaining approvals, offtake arrangements and financing work as it moves towards a future development decision.