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

Another day in the green for the rare earths miner.

| More on:
happy mining worker fortescue share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Should you invest $1,000 in Nib Holdings right now?

Before you buy Nib Holdings shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nib Holdings wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

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

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

How an $8k investment in this ASX All Ords stock one-year ago is worth $58,182 today

The ASX All Ords stock has enjoyed a stellar year. But why?

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finally caught a break this Friday.

Read more »

Four people on the beach leap high into the air.
Share Gainers

4 ASX All Ords stocks shrugging off the looming 2025 market correction and charging higher

If the ASX All Ords enters a 2025 market correction, don’t blame these soaring stocks!

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Catalyst Metals, Droneshield, Liontown, and Northern Star shares are charging higher

These shares are ending the week with a bang. But why?

Read more »

A happy young boy in a wheelchair holds his arms outstretched as another boy pushed him.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were once again selling this Thursday...

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Austal, Boss Energy, Capricorn Metals, and Ora Banda shares are charging higher today

These shares are having a decent session on Thursday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a woeful Wednesday for ASX investors today.

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

3 ASX shares leaping to new 52-week highs in today's sinking market

These ASX shares are shrugging off the broader market jitters to hit new 52-week plus highs.

Read more »