• Strategic positioning supporting processing of critical minerals in Australia
• Life of mine Rare Earths offtake secured
• Early-stage, flexible cornerstone funding support

VHM Limited (ASX: VHM) has entered into a long-term strategic partnership with Iluka Resources Limited (ASX: ILU), comprising a binding offtake agreement and a $40 million convertible note funding package for the Goschen Rare Earths and Mineral Sands Project in Victoria. The partnership includes a binding offtake agreement for 100% of Goschen's rare earths concentrate production, providing long-term revenue certainty and supporting VHM's development pathway. Iluka will provide up to $40 million in convertible note funding, structured to optimize shareholder outcomes and reduce the need for additional equity. This partnership is expected to materially strengthen VHM's position in discussions with export credit agencies and project financiers, accelerating the project towards Final Investment Decision (FID).

VHM expects to finalize the heavy mineral concentrate offtake and secure debt financing in the latter half of 2026.

VHM is optimistic about the partnership's potential to accelerate the Goschen Project towards Final Investment Decision (FID) and strengthen its development pathway.