Wyloo plans take a majority stake in the Yangibana rare earths project, in a move which would cancel out millions owed to it by Hastings Technology Metals.
Andrew and Nicola Forrest’s Wyloo plans take a majority stake in the Yangibana rare earths project, in a move which would cancel out millions owed to it by Hastings Technology Metals.
A term sheet between Tattarang's mining arm Wyloo and Hastings, announced this morning, outlines a plan for the former to take a 60 per cent stake in Yangibana from the latter through a joint venture arrangement.
The deal would make Wyloo the operator and manager of Yangibana, a $950 million rare earths project north-east of Carnarvon which Hastings has sought to develop over two stages.
The transfer would cancel out exchangeable notes, currently valued at around $220 million, owed by Hastings to Wyloo – which were scheduled to mature in October.
Hastings will also give its 19.99 per cent interest in Canadian magnet maker Neo Performance Materials – valued at $79.8 million – to Wyloo.
The deal comes months after Wyloo filed a default notice against Hastings in November 2024, flagging fears that the developer would be unable to pay back the loan it took from the Forrest family company in 2022.
Hastings smoothed over those concerns days later, withdrawing the notice and talking up the goodwill between the parties.
Hastings said today’s deal would significantly derisk the project, highlighting Wyloo’s “technical and financial credentials” and the mutual benefit that would come of it.
Yangibana has a $220 million loan on the table from the Northern Australia Infrastructure Fund and a further $100 million loan from Export Finance Australia, but both are contingent on the construction of a rare earths separation plant in Australia.
If the JV goes ahead Hastings will be required to stump up 40 per cent, or $126 million, of the $316 million remaining capital required to get Yangibana off the ground.
Hastings had $8.9 million in cash and equivalents in the bank at the end of 2024.
“The joint venture arrangement 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,” Hastings executive chair Charles Lew said.
Mr Lew said $226 million had already been spent on Yangibana to date.
Wyloo chief executive Luca Giacovazzi said it was an exciting time to come on board as a partner in a critical minerals project.
“Yangibana is one of the most advanced rare earths projects in Australia and will become a globally significant source of NdPr, a critical component in the manufacture of permanent magnets, as well as a producer of Niobium and other by-products critical to the energy transition,” he said.
Wyloo’s Kambalda nickel operation – acquired in its deal for Mincor – was paused in 2024 amid depressed market conditions, and its joint venture with Igo halted work on a battery materials facility in Kwinana in July.
The private company also holds an 8.45 per cent stake in Telfer goldmine owner Greatland Gold.
Yangibana hosts a 20.9 million tonne orebody, from which Hastings hopes to produce 37,000 tonnes per annum of rare earth concentrate over a 17-year mine life.
Hastings has also been in talks to build a downstream processing plant in Saudi Arabia, while simultaneously assessing its options closer to home.
Mr Lew said the company would continue to explore that option.
“In addition, with the strong relationships we have built in Saudi Arabia, Hastings will continue to pursue opportunities for building downstream hydromet to magnet processing plants in the Kingdom which will benefit our JV with Wyloo,” he said.
Hastings shares were up 1.6 per cent this morning, to 31.5c.
