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Hastings Technology Metals sells 60% of Yangibana project to Wyloo in strategic JV agreement

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By Colin Hay - 
Hastings Technology Metals ASX HAS sale Wyloo Yangibana
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Hastings Technology Metals (ASX: HAS) has entered into a definitive agreement to sell a 60% interest in the Yangibana rare earths and niobium project to the Andrew Forrest-backed Wyloo Metals.

The company has also agreed to form an unincorporated joint venture (JV) for the Yangibana project, which is located in the Gascoyne region of Western Australia.

This follows Wyloo’s decision in February of this year to enter into exclusive negotiations with Hastings about forming the JV for Yangibana and acquiring its equity interest in TSX-listed Neo Performance Materials.

Offtake agreement

Hastings had previously signed a non-binding heads of agreement with Neo outlining the framework for the parties to negotiate a binding commercial offtake agreement for the supply of rare earth concentrate from Stage 1 of the Yangibana project.

Now, upon completion of the transaction, Wyloo will be appointed as the manager of Yangibana to advance the project to a final investment decision (FID).

As part of the agreement, Wyloo has also agreed to redeem all outstanding exchangeable notes Hastings was due to repay by October 2025, with an estimated face value of $135 million.

Significant de-risking

Hastings executive chair Charles Lew said the JV with Wyloo would significantly de-risk Yangibana and reduce the capital contribution required from Hastings’ shareholders, while enabling Hastings to maintain a meaningful interest in the project.

“With substantial investment in supporting infrastructure having been completed at Yangibana, the JV will be well placed to move forward with the construction and development of a global Tier 1 rare earths and niobium project,” Mr Lew said.

Once it has completed the transaction, Hastings will focus on its Ark Gold and Brockman niobium and heavy rare earths projects in WA.

Key energy transition role

Wyloo chief executive officer Luca Giacovazzi said his company would work with the Hastings team to transition the Yangibana project to the JV over the coming months.

“As rare earths continue to play a key role in the energy transition, Yangibana will be well placed to become a globally significant supplier of green critical minerals,” Mr Giacovazzi said.

“As one of the most advanced rare earths projects in the world, Yangibana will be able to produce concentrate within 18 months from a FID.”