Hastings Sells 60% of Yangibana Project to Wyloo, Cuts Debt with Early Note Redemption
Hastings Technology Metals has entered a binding agreement with Wyloo to form a 60:40 joint venture on the Yangibana Rare Earths and Niobium Project, with Wyloo taking the lead on funding and management. This partnership aims to de-risk project development and accelerate progress toward final investment decision.
- Formation of 60:40 unincorporated joint venture between Hastings and Wyloo
- Wyloo to manage Yangibana Project and fund its pro-rata share of capital costs
- Early redemption of Wyloo-held Exchangeable Notes, reducing Hastings’ debt burden
- Hastings retains 40% interest and focuses on Brockman Niobium and Ark Gold projects
- Completion subject to shareholder approval and regulatory conditions
Strategic Partnership to Unlock Yangibana’s Potential
Hastings Technology Metals Ltd has taken a significant step forward in advancing its flagship Yangibana Rare Earths and Niobium Project by executing a binding transaction agreement with Wyloo Consolidated Investments. The deal establishes a 60:40 unincorporated joint venture (UJV), with Wyloo acquiring a 60% interest and assuming management responsibilities for the project’s development and funding.
This partnership marks a pivotal moment for Hastings, which has invested heavily in Yangibana’s infrastructure and resource definition. By bringing in Wyloo’s technical expertise and financial capacity, the joint venture aims to substantially de-risk the project’s path to final investment decision (FID) and construction, while reducing Hastings’ capital exposure and overhead costs.
Financial and Operational Implications
Under the terms of the agreement, Wyloo will fund its share of remaining capital costs, easing Hastings’ residual equity commitment to an estimated $32 million at FID, assuming a 50:50 debt-to-equity gearing structure. Additionally, Wyloo has agreed to redeem all outstanding Exchangeable Notes it holds, representing an early full repayment of debt originally due in October 2025. This early redemption is expected to improve Hastings’ balance sheet and financial flexibility.
Wyloo’s appointment as project manager brings seasoned leadership, with Dr Tony Chamberlain, an industry veteran with over 30 years’ experience, named as Project Director. This leadership is expected to drive technical progress and funding arrangements, positioning Yangibana as a globally significant supplier of critical rare earth elements essential for electric vehicles, renewable energy, and advanced technologies.
Hastings’ Strategic Focus Post-Transaction
While Hastings reduces its direct capital burden on Yangibana, it retains a meaningful 40% interest in the project’s revenue and cash flow streams. The company will also intensify its focus on its 100% owned Brockman Niobium and Heavy Rare Earths Project in the Kimberley region, alongside exploration at the Ark Gold tenements near Yangibana. This diversified portfolio approach aims to generate additional long-term shareholder value beyond Yangibana.
Completion of the transaction remains subject to shareholder approval, anticipated at a general meeting in June, and customary regulatory consents. Both parties have committed to satisfying these conditions promptly to expedite the joint venture’s operational commencement.
Broader Market and Regional Impact
The Yangibana Project is fully permitted and poised to produce rare earth concentrates within 18 months of FID, offering a timely supply response to growing global demand for green critical minerals. The joint venture is expected to create hundreds of jobs and economic opportunities in Western Australia’s Gascoyne region, reinforcing the project’s strategic importance to the local community and the broader energy transition.
Wyloo’s broader portfolio, including a near 20% stake in Neo Performance Materials, complements this venture by integrating rare earth supply chain capabilities. Both companies express optimism about leveraging this partnership to strengthen Australia’s position in the global critical minerals market.
Bottom Line?
As Hastings and Wyloo move toward completion, investors will watch closely how this joint venture reshapes the rare earths landscape and Hastings’ strategic trajectory.
Questions in the middle?
- Will Wyloo exercise its option to increase its stake to 70%, and what would that mean for Hastings’ dilution?
- How will the joint venture secure final project financing amid evolving market conditions?
- What are the timelines and risks associated with obtaining shareholder and regulatory approvals?