Hastings Technology Metals (ASX:HAS) has signed a non-binding term sheet to enter into an unincorporated joint venture with Andrew Forrest’s Wyloo for the Yangibana Rare Earths and Niobium Project in Western Australia.
Yangibana, which is estimated to have an initial 17-year mine life, has a current resource of 29.93 million tonnes @ 0.93% total rare earth oxide (TREO) and a reserve of 20.93 million tonnes @ 0.90% TREO.
As part of the deal, Wyloo will take a 60% interest, while Hastings’ subsidiary Yangibana Jubilee will own the remaining 40%. Wyloo will also have an option to increase its interest to 70%.
Both companies have executed a share purchase agreement, in which Hastings will sell 8.35 million shares, valued at $79.8 million, in Neo Performance Materials (TSX:NEO) to Wyloo.
As a result, Wyloo will own a 19.99% stake in the company.
The project will be developed in two stages, initially focusing on constructing the mine and beneficiation plant to produce 37,000 tonnes per year of rare earth concentrate.
Wyloo will review the development program and capital budget to further optimise and achieve additional cost-savings with the joint venture’s commitment to progress the project forward into construction and production.
Hastings says the total capital cost for Yangibana is $474 million, subject to further optimisation by Wyloo.
Executive Chairman Charles Lew says the joint venture is a result of what has been ongoing, positive discussions between both companies, and a mutually beneficial way to proceed with developing Yangibana.
“Partnering with Wyloo brings incremental technical expertise and strong financial backing to our project, which is already one-third completed,” Lew says.
Wyloo CEO Luca Giacovazzi says Yangibana is one of the most advanced rare earths projects in Australia and will become a globally significant source of neodymium-praseodymium.
“We are also pleased to acquire a 19.99 per cent equity stake in Neo, a leading, global rare earths processing and advanced permanent magnets producer,” Giacovazzi says.
“We look forward to working more closely with both Hastings and Neo across the mine-to-magnet supply chain as we expand our critical minerals portfolio.”
The target completion date for executing the agreement and other binding documentation, subject to regulatory approval, is the end of March 2025.
Wyloo is focused on delivering critical minerals for the energy transition and managing a diverse portfolio of strategic investments in several public and private companies.
Hastings Technology Metals is a Perth-based rare earths company focused on developing the Yangibana Project located in the Gascoyne region of Western Australia.
Yangibana is fully permitted for immediate development and is well-timed to meet the forecast supply gap for rare earths accelerated by the growth in EVs and wind turbines which are both vital for the energy transition.
According to the CSIRO, the global demand for rare earths doubled between 2015 and 2023, largely driven by clean energy technology. It has the potential to double again in 2050, due to the same factors.
Write to Aaliyah Rogan at Mining.com.au
Images: Hastings Technology Metals
