Offtake MOU Signed with Thyssenkrupp Raw Materials GmbH
- Hastings announces its fourth offtake MOU with for the future supply of Mixed Rare Earth Carbonate (MREC) from its Yangibana project in Western Australia.
- This MOU agreement is to supply 5,000 tonnes per annum for a period of 10 years.
- Total of four MOUs signed so far represent approximately 73% of planned MREC annual production of 15,000 tonnes (see Note below) from Yangibana.
The Parties have undertaken to negotiate in good faith to reach agreement for an exclusive commercial offtake contract for Germany, Europe and the supply chain of German and European companies worldwide.
Charles Lew, Hastings Executive Chairman, said "This fourth MOU for an offtake agreement with thyssenkrupp Raw Materials GmbH brings our total supply commitment to 73% of Yangibana projected production.
The Company will be accessing the capital markets to raise a substantial amount of equity during the year and we are currently conducting debt related discussions with global financial institutions for project finance loans.
The execution of this MOU is an important step to providing the capital markets and project finance bankers with confidence to work with Hastings to bring this world class rare earth mine into production."
The Parties have acknowledged that any commercial offtake agreement is contingent on Hastings starting operations and production of MREC from the Yangibana mine, and with the usual additional conditions typical in commercial off-take contracts.
Hastings estimates an annual production quantity of 15,000 tonnes of MREC (see Note below), which it will sell to offtake partners, with production targeted to commence in late 2019.
The pricing formula shall be mutually agreed with reference to published index price for oxides plus a distributor margin.
The MOU will lapse if there is no agreement executed with thirty six months of signing the MOU.
Note: ASX Announcement 28 November 2017
The production targets and underlying assumptions have not changed from the date of release of the DFS on 28 November 2017.
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is currently developing a rare earths mine and processing plant at Yangibana in the Gascoyne Region of Western Australia. The processing plant is anticipated to commence production of MREC in late 2019. Hastings has completed both beneficiation and hydrometallurgy pilot plants, in the process producing MREC samples which are high in neodymium and praseodymium content. These are critical materials for the production of permanent magnets and other technology applications. The MREC will be capable of being further separated and refined to produce a number of individual rare earth oxides outside of Australia. Hastings estimates an annual production quantity of 15,000 tonnes of MREC¹ which it will sell to offtake partners globally.
Hastings Technology Metals Ltd