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Highlights
- Hastings Technology Metals (ASX:HAS) and Wyloo form a joint venture for Yangibana Rare Earths Project.
- Wyloo to acquire a 60% stake, with an option to increase to 70%.
- Agreement includes Wyloo purchasing shares in Neo Performance Materials (TSX:NEO).
Hastings Technology Metals (ASX:HAS) has taken a significant step in advancing its Yangibana Rare Earths and Niobium Project in Western Australia through a strategic partnership with Wyloo. The companies have signed a non-binding term sheet to form an unincorporated joint venture, leveraging both financial strength and technical expertise to propel the project forward.
Under the agreement, Wyloo will secure a 60% interest in the project, while Hastings' subsidiary, Yangibana Jubilee, will retain the remaining 40%. Additionally, Wyloo has an option to increase its stake to 70%, reinforcing its commitment to the development of this high-potential rare earths site.
Yangibana’s Strategic Importance
Yangibana is estimated to have a 17-year mine life and contains a total resource of 29.93 million tonnes at 0.93% total rare earth oxide (TREO), with a reserve of 20.93 million tonnes at 0.90% TREO. The project is expected to be developed in two stages, beginning with the construction of the mine and beneficiation plant. Once operational, it is set to produce 37,000 tonnes of rare earth concentrate per year.
Wyloo will assess the development program and capital budget to optimize costs while maintaining the momentum required for successful project execution. Hastings estimates the total capital cost for Yangibana at $474 million, which remains subject to further optimization.
Share Transaction with Neo Performance Materials
As part of the broader agreement, Hastings will transfer 8.35 million shares in Neo Performance Materials (TSX:NEO) to Wyloo. This transaction, valued at $79.8 million, will grant Wyloo a 19.99% stake in Neo, a global leader in rare earths processing and advanced permanent magnets.
Wyloo CEO Luca Giacovazzi emphasized Yangibana’s potential, calling it one of the most advanced rare earths projects in Australia. The company aims to play a pivotal role in the mine-to-magnet supply chain by working closely with both Hastings and Neo.
Future Outlook
The agreement is expected to be finalized by March 2025, subject to regulatory approvals. With global demand for rare earths doubling between 2015 and 2023, and projected to double again by 2050, this joint venture is well-positioned to contribute to the supply chain for clean energy technologies, including electric vehicles and wind turbines.
