Hastings Technology Metals (ASX:HAS) Forms Joint Venture with Wyloo
Joint Venture Formation
Hastings Technology Metals Ltd has executed a Transaction Agreement with Wyloo Consolidated Investments Pty Ltd, selling a 60% interest in the Yangibana Rare Earths and Niobium Project. This agreement forms a 60:40 unincorporated joint venture to advance the project towards a final investment decision.
Financial Impacts
The Transaction Agreement includes the early redemption of all outstanding Exchangeable Notes valued at approximately $135 million, reducing the company’s debt ahead of the October 2025 maturity date. Additionally, Wyloo will fund its share of remaining capital costs, significantly lowering Hastings’ residual equity to $32 million at FID.
Project Management and Leadership
Wyloo will manage the Yangibana Project, overseeing development and funding. Dr Tony Chamberlain has been appointed Project Director for the joint venture, bringing over 30 years of experience in the resources industry.
Future Focus
Hastings will continue to focus on its 100% owned Brockman Niobium and Heavy Rare Earths Project, as well as exploration at its Ark Gold tenements in Western Australia.
Executive Comments
Executive Chairman Mr Charles Lew stated, “We are extremely pleased to have entered into the Transaction Agreement with Wyloo for the conditional sale of an interest in the Yangibana Project and formation of a joint venture. The joint venture will significantly de-risk Yangibana and reduce the capital contribution required from Hastings’ shareholders, whilst enabling Hastings to maintain a meaningful interest in the Yangibana Project.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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