The Forrest’s mining arm Wyloo has cemented its majority stake in the Yangibana rare earths project, a transaction which clears the debt owed by Hasting Technology Metals.
The Forrest’s mining arm Wyloo has cemented its majority stake in the Yangibana rare earths project, a transaction which clears the debt owed by Hasting Technology Metals.
Tattarang's mining arm Wyloo and Hastings have executed the deal first announced earlier this year, under which Wyloo will take on management on the under-construction project and a 60 per cent stake in the asset north-east of Carnarvon.
Wyloo will drive and fund the development towards a final investment decision. The joint venture covers both the beneficiation plant and the stage two plan for a hydrometallurgical plant.
The deal also cancels out exchangeable notes, valued at $220 million in total, that was owed by Hastings to Wyloo and scheduled to mature in October.
It comes after Wyloo raised concerns the developer would be unable to pay back the loan it took from the Forrest family company back in 2022. Those fears were quelled in the following days, when the default notice was withdrawn.
Hastings is also handing over its 19.99 per cent interest in Canadian magnet maker Neo Performance Materials – valued at $79.8 million – to Wyloo.
Canada is point of interest for Wyloo, steered by chief executive Luca Giacovazzi, with the company pursuing the development of two projects in Ontario.
Commenting on the transaction, Mr Giacovazzi said Yangibana would be well placed to become a globally significant supplier of green critical minerals.
"As one of the most advanced rare earths projects in the world, Yangibana will be able to produce concentrate within 18 months from a final investment decision,” he said.
"The fully permitted project, which is near completion, will significantly boost jobs and economic opportunities in Western Australia’s Gascoyne region, and we remain committed to building on existing relationships with Traditional Owners and local communities.
"Together with our 19.9% stake in Neo Performance Materials, we are excited to explore the potential of this rare earths mine to magnet supply chain as part of our expanded portfolio of critical minerals projects.”
Taking on the stake in the rare earths project comes amid a time of heightened interest in rare earth elements which have been tied up in the trade war between the US and China, the latter of which has the stronghold on the globe's production and processing of the commodities.
Local players have been vocal in calling for support in developing supply chains outside of China, with the Prime Minister Anthony Albanese outlining his intention to build a stockpile of critical minerals in response to the trade turmoil.
Rare earths are critical for a range of defence technologies, including radar, sonar, missile guidance systems, alongside electric vehicles and wind turbines.
Hastings executive chairman Charles Lew said the joint venture would significantly de-risk Yangibana and reduce the capital contribution required from the company, whilst maintaining an interest in the Yangibana project.
“With substantial investment in supporting infrastructure having been completed at Yangibana, the joint venture will be well placed to move forward with the construction and development of a global Tier 1 rare earths and niobium project,” he said.
“Going forward, Hastings will focus on its Ark Gold and Brockman niobium and heavy rare earths projects, which are expected to generate additional long term value to shareholders.”
Hastings’ shareholders still need to sign off on the deal, alongside other regulatory conditions.
The Yangbibana project is backed by taxpayer funds to the tune of $220 million 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 locally.
