Wyloo Takes 60% Stake, Cancels A$123M Debt in Yangibana JV Deal
Hastings Technology Metals and Wyloo have formalised their joint venture for the Yangibana Rare Earths Project, with Wyloo taking a 60% stake and cancelling A$123 million in exchangeable notes, significantly de-risking the project and reducing Hastings’ funding burden.
- Wyloo holds 60% interest and operates the Yangibana JV
- Outstanding A$123 million exchangeable notes cancelled
- Hastings retains 40% stake with reduced equity funding needs
- Stage 1 Beneficiation Plant targets final investment decision soon
- JV aims for 18-month construction timeline to production
A Landmark Partnership for Yangibana
Hastings Technology Metals Ltd (ASX, HAS) has reached a pivotal milestone by completing its joint venture agreement with Wyloo Consolidated Investments Pty Ltd for the development of the Yangibana Rare Earths and Niobium Project in Western Australia. This partnership formalises Wyloo’s 60% ownership and operational control of the project, while Hastings retains a significant 40% stake.
The deal notably includes the cancellation of Wyloo’s outstanding A$123 million exchangeable notes, a move that substantially strengthens Hastings’ balance sheet and reduces its financial risk. This strategic alliance brings together Wyloo’s technical and financial expertise with Hastings’ established project foundation, setting a clear path toward production.
Financial and Operational Implications
With Wyloo appointed as the joint venture manager and operator, the project benefits from experienced leadership to drive development forward. Hastings’ residual equity funding requirement for the Stage 1 Beneficiation Plant is now estimated between A$13 million and A$32 million, a significant reduction compared to previous capital commitments.
The JV structure also includes a management committee with equal representation, a marketing agreement to handle product sales, and a cross-security deed to safeguard the interests of both parties. These arrangements aim to ensure operational transparency and aligned incentives as the project advances.
Advancing Toward Production
Key next steps include finalising mine scheduling, capital and operating expenditure reviews, and completing engineering designs for the beneficiation plant. The partners are targeting a final investment decision (FID) shortly, with an 18-month construction timeline envisioned for Stage 1.
Wyloo’s involvement is expected to de-risk the project substantially, providing funding certainty and operational expertise. The Yangibana Project, rich in critical rare earth elements like Neodymium and Praseodymium, is well positioned to meet growing demand driven by electric vehicles, renewable energy, and advanced technologies.
Strategic Significance
For Hastings shareholders, this JV represents a balance between retaining meaningful exposure to a world-class rare earth deposit and mitigating the financial and execution risks inherent in large-scale mining projects. Wyloo’s backing enhances the project’s credibility and aligns with Australia’s broader ambitions to secure critical mineral supply chains.
Both CEOs expressed optimism, Hastings’ Vince Catania highlighted the de-risked pathway to production, while Wyloo’s Luca Giacovazzi emphasised the project’s strategic importance in supplying critical elements for green technologies.
Bottom Line?
With the joint venture now operational, eyes will be on the final investment decision and how this partnership reshapes the rare earths landscape in Australia.
Questions in the middle?
- How will Hastings manage its residual equity funding amid fluctuating capital costs?
- What progress will the JV make on offtake agreements and project financing in the coming months?
- Could Wyloo’s operational control lead to changes in project timelines or scope?