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Hastings regards Western Australia-based Yangibana as a world-class rare earths and niobium deposit.
Discovered in 2014, Yangibana has since progressed from exploration to construction, with first production expected in the second quarter of 2026. The operation has a projected 17 year mine life, with Stage 1 concentrate production estimated at 37,000 tonnes per year. Construction at the site is described as 30 percent complete.
“The joint venture agreement is the result of what has been ongoing, positive discussions between Hastings and Wyloo regarding the exchangeable notes and a mutually beneficial way to proceed with the development of the Yangibana project, within which significant value will be realised,” said Hastings Executive Chairman Charles Lew.
Wyloo will hold a 60 percent participating interest in the unincorporated joint venture, with the option to increase its share to 70 percent. Hastings’ subsidiary, Yangibana Jubilee, will have the other 40 percent.
A Financial Review article notes that if all steps of the deal are completed, Hastings' AU$200 million debt to Wyloo will be settled. Wyloo, which is led by billionaire Andrew Forrest, lent AU$150 million to Hastings in 2022, earmarking the funds for the purchase of a 21.5 percent stake in Neo Performance Materials (TSX:NEO,OTC Pink:NOPMF).
In November 2024, Wyloo issued a default notice to Hastings, citing concerns over the company’s ability to pay back the debt. This action came after Hastings secured a AU$5 million loan from Equator Capital, an entity associated with Lew. The default notice was subsequently withdrawn, and both parties resumed discussions to resolve the financial concerns.
As mentioned, if Hastings satisfies all terms of the new deal with Wyloo, the debt will be forgiven.
The first step, which saw Hastings transfer the majority of its Neo position to Wyloo, was completed on February 20. Wyloo now holds 19.9 percent of Neo. Step two involves the establishment of the 60/40 joint venture.
The final step will see Hastings sell its remaining 1.46 percent of Neo shares, with all sale proceeds to be paid to Wyloo.
Execution of the deal is expected by the end of March. The arrangements are subject to shareholder approval.
Shares of Hastings jumped on the news, rising as high as AUS$0.37 on February 21. However, the company's share price has declined significantly over the past year due to the uncertainty at Yangibana, falling around 40 percent.
