VHM’s A$11.3m Placement Priced at $0.35 to Fund Goschen Project Expansion

Equity Raising to Propel Goschen Project

VHM Limited has announced a significant equity raising initiative comprising a fully underwritten institutional placement to raise A$10.3 million alongside a non-underwritten share purchase plan (SPP) targeting up to A$1.0 million. This combined A$11.3 million capital injection is earmarked to accelerate the development of the Goschen rare earths project located in Victoria, Australia.

The funds will be directed towards early engineering works, long-lead procurement, finalising land acquisition, and covering operating costs necessary to reach a final investment decision (FID) in the first half of 2026. The placement involves issuing approximately 29.5 million new shares at an offer price of $0.35 per share, reflecting a 25.5% discount to the last closing price, and is fully underwritten by Jarden Australia Pty Ltd.

Strategic Project with Robust Economics

The Goschen project stands out with its diversified assemblage of both light and heavy rare earth elements, complemented by mineral sands co-products such as zircon and rutile, which enhance profitability and provide a hedge against commodity price volatility. The project benefits from a strategic location near critical infrastructure including road, rail, port access, and secure water and energy supplies, facilitating a short pathway to production.

VHM targets an initial production throughput of 1.5 million tonnes per annum (Mtpa) with flexibility to fast-track to a permitted 5 Mtpa plant size. The project has secured all substantive approvals or expects them imminently, positioning it well for timely execution.

Government Support and Financing Momentum

Importantly, the Goschen project is identified under the landmark US-Australia rare earths framework aimed at securing critical mineral supply chains. VHM has received a Letter of Interest from the US Export-Import Bank (EXIM) for up to US$200 million and a Letter of Support from Export Finance Australia for up to A$75 million in project financing. These endorsements reflect strong strategic backing and enhance the project's financing prospects.

In addition to government-backed support, VHM is engaged in detailed discussions with major domestic and international banks, project financiers, and strategic partners including Currumbin and Mitsui, with ongoing negotiations for potential joint ventures and offtake agreements.

Market Context and Risks

The rare earths market is characterized by a growing supply deficit and strong demand growth, particularly for magnet-critical elements such as neodymium, praseodymium, dysprosium, and terbium. This market dynamic underpins the long-term economics of the Goschen project.

However, VHM faces typical development risks including financing uncertainties, commodity price volatility, regulatory and operational challenges, and the need to successfully execute the final investment decision. The company has disclosed these risks transparently, emphasizing the speculative nature of mining project development.

Next Steps and Market Implications

VHM aims to achieve financial close and make its FID in the first half of 2026, with first production targeted for the second quarter of 2027. The equity raising strengthens the company’s balance sheet and supports critical pre-construction activities, setting the stage for the next phase of project development.

Investors will be watching closely how VHM navigates financing, offtake agreements, and market conditions in the coming months, as these factors will be pivotal in determining the project's ultimate success and the company’s valuation trajectory.