The Vital Metals Limited (ASX: VML) share price isn't going anywhere on Wednesday. This comes after the rare earths mining company requested a trading halt before market open.
As such, Vital Metals shares remain frozen at 6.1 cents apiece. It's worth noting that the company's shares have gained almost 25% in the past week.
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Why are Vital Metals shares in a trading halt?
The Vital Metal share price was placed in a trading halt this morning pending an important acquisition announcement.
While no details have been given by the company, several media outlets have indicated what's happening behind the curtain.
According to the Australian Financial Review, Vital Metals is set to acquire two projects from Quebec Precious Metals Corporation. Reportedly, both parties have signed a binding term sheet involving the C$8 million (A$8.5 million) purchase.
The first takeover relates to the Kipawa Rare Earth project in which Vital Metals will buy a 68% stake. The remaining 32% interest is held by joint venture partner Investissement Quebec.
Meantime, the second investment is for a 100% interest in the Zeus Rare Earth project.
Both heavy rare earth projects are expected to complement Vital Metals' light rare earth operations at Nechalacho in Canada's Northwest Territories. This could potentially make the company the only producer of both heavy and light rare earth materials in North America.
Just last week, Vital Metals completed its first rare earths production at its Nechalacho project.
About the Vital Metals share price
Since this time last year, Vital Metals shares have risen sharply by more than 280%. In 2021 alone, the company's share price is up 90%, reflecting positive investor sentiment.
Vital Metals presides a market capitalisation of roughly $253.4 million with approximately 4.1 billion shares on its registry.
