Hastings Technology Metals (ASX:HAS) targets first mixed rare earth chloride (MREC) production in Q2 2027 following the acquisition of a 49% stake in Thai company BZNM.
BZNM owns the Kabin Buri hydrometallurgical plant in Thailand, which is designed to process 12,000 tonnes per annum (tpa) of monazite concentrate into MREC.
Total consideration is capped at US$15 million ($21.3 million). The deal comprises a US$500,000 deposit, US$1 million in commissioning payments due by 30 November, and the issue of 23 million shares at US$0.50 each to Enuo Holdings, valued at US$8 million and representing about 9% of enlarged capital. The shares remain under voluntary escrow for six months.
A further US$5.5million remains deferred in two annual instalments of US$3 million and US$2.5 million post-commercial production, subject to the plant delivering specification-grade MREC to third-party buyers.
Plant upgrades and installation are scheduled to finish in January 2027 ahead of commissioning in the March quarter.
Under the terms, Enuo will supply at least 10,000tpa of monazite concentrate grading a minimum 54% total rare earth oxide under a binding two-year contract with a one-year extension option. Hastings notes that initial operations do not depend on concentrate supply from its 40%-owned Yangibana Joint Venture.
The company is also seeking Thai regulatory approvals to increase its ownership in BZNM to 51% or higher.
CEO Vince Catania says completion gives Hastings “a clear run at construction and commissioning”.
“Our job now is to get on-spec product out of the door by Q2 2027.
“There has been good interest from both feedstock suppliers and potential customers since we announced the transaction. That tells us there is high demand for MREC processing capacity outside the established supply chain.”
Hastings Technology Metals is a rare earths and critical minerals company advancing Australian resource projects and downstream rare earth processing in Thailand.
Write to Paula Fabe at Mining.com.au
Main image: Hastings Technology Metals
