Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX: HAS) has entered into a binding agreement to acquire the 30% interest in the Yangibana rare earths project joint venture tenements currently held by Cadence and its subsidiary Mojito Resources Limited.
The interest will be acquired for $9 million to be settled by the issue of fully paid ordinary shares in Hastings at a price to be determined based on the 30-day VWAP prior to completion, which is set at six months from the date of signing of this agreement.
As a result of the acquisition, Hastings will now control 100% of the previously reported 27.42Mt of Mineral Resources. This includes 2.34Mt of Mineral Resources and 0.73Mt of Ore Reserves that were attributable to Cadence. The addition of 0.73 million tonnes of Ore Reserves will immediately increase the mine life of the Yangibana rare earths project by approximately one year to a total of 16 years.
“We are pleased to acquire the remaining joint venture working interest in the Yangibana rare earth project to take Hastings’s interest in the project to 100%,” executive chairman Charles Lew said.
“The acquisition provides Hastings an immediate increase in Ore Reserves and life of mine by up to one year. Furthermore, it allows Hastings to perform mine project planning without the need to consider complex tenement boundary arrangements, consultation and potential issues with ore blending a JV material into the beneficiation plant.
“Further benefits will be unlocked in future drilling programs aimed to extend the resource base in the areas that have been only lightly explored to date.”