The acquisition includes 2.34Mt of mineral resources and 0.73Mt of ore reserves, and adds one year of production to the Yangibana project, increasing its life of mine to 16 years
Hastings to acquire Yangibana rare earths project. (Credit: Chris Wiedenhoff from Pixabay)
Hastings Technology Metals has agreed to acquire the remaining 30% stake in the Yangibana rare earth project, held by Cadence Minerals and its subsidiary Mojito Resources, for A$9m ($6.2m).
Under the terms of the agreement, the Australian rare earths company will issue fully paid ordinary shares, whose price will be determined prior to closing.
The issue price will be finalised based on the volume weighted average price (VWAP) of the Hastings shares in the 30 trading days prior to settlement.
Upon closing of the transaction, Hastings will have 100% control over the entire Yangibana rare earth tenement package.
The acquisition includes 2.34Mt of mineral resources and 0.73Mt of ore reserves, and adds one year of production to the Yangibana project, increasing its life of mine to 16 years.
Hastings executive chairman Charles Lew said: “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%.
“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.”
Yangibana is a significant rare earths project, containing substantial Neodymium and Praseodymium resources, covering an area of nearly 650km2.
The project is located in the Gascoyne region, 250km northeast of Carnarvon Western Australia.
Hastings has completed a definitive feasibility study in November 2017, excluding the Cadence’s joint venture interests.
The company expects a substantial opportunity to extend and increase the Mineral Resources of the Yangibana tenements.
The tenements include two primary deposits, Yangibana and Yangibana North, and four inferred deposits Gossan, Hook, Lion’s Ear and Kane’s Gossan, along with other targets.