Why the Vital Metals (ASX:VML) share price is up 37% in a week

Another day in the green for the rare earths miner.

The Vital Metals Limited (ASX: VML) share price has soared into the green during today's session, extending its lengthy bull run.

At the market close, Vital Metals shares were exchanging hands at 7.4 cents apiece, an 12% gain from the open this morning.

Let's zoom in on the tailwinds behind the Vital Metals share price over the past week.

happy mining worker fortescue share price

Image source: Getty Images

Quick recap on Vital Metals

Vital Metals is a minerals explorer with a focus on rare earths and gold prospects.

It has a geographical footprint in Australia, Canada and Burkina Faso in West Africa, although derives most of its revenue from Australia.

At the time of writing, Vital Metals has a market capitalisation of $307 million.

What's behind the Vital Metals share price this week

The Vital Metals share price has been a busy mover over the past week, climbing 37% into the green since last Friday's closing price.

On 9 August, the company announced its plans to expand into the US capital markets.

Vital advised it had engaged Ecoban Securities Corporation as investor relations and capital markets consultant.

As part of the planned listing, the company will issue 10 million three-year listed options to Ecoban's listing arm, Tectonic. Vital will deal with Tectonic directly under the agreement.

Recall that Tectonic also advised Vital Metals with a $42 million equity raise earlier in the year.

In addition, the rare earths miner placed its securities into a trading halt on 10 August. A day later, the company announced it would acquire Qubec Precious Metal Corporation's 68% interest in (the) Kipawa and 100% interest of (the) Zues heavy rare earth projects in Canada.

The transaction will occur for $8.7 million over the coming 5 years.

In its release, Vital Metals said the Kipawa and Zues sites complemented its light rare earths operations at Nechalocho, another of the company's rare earths sites in Canada.

In addition, the acquisition had "the potential to transform Vital into the only producer of both light and heavy rare earths in North America", according to the company.

Vital Metals share price snapshot

The Vital Metals share price has climbed 131% year to date, extending the previous 12 month's return of 311%.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s gain of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week this Friday.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing session on the ASX this Thursday.

Read more »

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing mid-week session today.

Read more »

Girl with painted hands.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy Tuesday session on the markets today.

Read more »

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week for investors this Friday.

Read more »

A woman looks shocked as she drinks a coffee while reading the paper.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a brutal day on the markets this Thursday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Which were the best-performing ASX 200 shares in September?

These shares didn't let a falling market stop them from racing higher last month.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a strong hump day on the ASX today.

Read more »