Signs Project Finance Mandate with KfW IPEX-Bank
- Exclusive mandate executed with German KfW IPEX-Bank for project finance loan advisory services
- KfW IPEX-Bank has provided indicative terms for senior debt of up to A$250 million for the project (conditional upon UFK Cover being obtained)
- KfW IPEX-Bank to make application to Euler Hermes for German Government Untied Loan Guarantee Cover
Hastings has previously announced offtake MOU with German and Chinese companies to supply its high grade Neodymium and Praseodymium (NdPr) to its customers. It is able to feed its mixed rare earth carbonate into the German and Chinese supply chain, in particular for the automotive industry. For sales to German customers, the Company is in principle eligible for UFK Cover due to the strategic importance to Germany of securing long term future supplies of NdPr, a critical mineral necessary in the manufacture of permanent magnets for electrical motors.
The UFK Cover scheme is a German government backed insurance cover to lenders and is administered by Euler Hermes. The portion of total project debt that qualifies for UFK Cover is generally provided on attractive terms including lower interest rates and longer loan tenure.
KfW IPEX-Bank, a wholly owned subsidiary of KfW Group is a leading German export and project finance specialist with significant experience in the debt financing of mining projects worldwide. KfW IPEX-Bank's engagement is to assist Hastings in obtaining approval from Euler Hermes for UFK Cover. In addition, KfW IPEX-Bank has provided indicative senior debt terms to Hastings including a targeted total senior debt amount of up to A$250 million.
The UFK Cover and subsequent senior debt project financing is subject to a detailed due diligence process. The execution of this engagement with KfW IPEX-Bank is an important step in support of the Yangibana Rare Earths project.
Charles Lew, Executive Chairman of Hastings commented that "the signing of this mandate with the German KfW IPEX-Bank is yet another important milestone in getting the Yangibana rare earths mine financed and built. We are pleased to be a long term supplier of NdPr technology metals to German companies seeking permanent magnets and the interest of KfW IPEX-Bank to assist in the financing underscores the strategic value of our project to Germany. "
About Hastings Technology Metals Ltd
- The Yangibana Project hosts Probable Reserves totaling 5.15 million tonnes at 1.12% TREO including 0.45% Nd2O3+Pr6O11 within JORC Resources totalling 21.0 million tonnes at 1.17% TREO (comprising Measured Resources of 3.9 million tonnes at 1.19% TREO, Indicated Resources of 8.6 million tonnes at 1.25% TREO and Inferred Resources of 8.4 million tonnes at 1.09% TREO), including 0.40% Nd2O3+Pr6O11.
- The Brockman deposit contains JORC Indicated and Inferred Resources totalling 41.4 million tonnes (comprising 32.3mt Indicated Resources and 9.1mt Inferred Resources) at 0.21% TREO, including 0.18% HREO, plus 0.36% Nb2O5 and 0.90% ZrO2.
- Rare earths are critical to a wide variety of current and new technologies, including smart phones, electric vehicles, wind turbines and energy efficient light bulbs.
- The Company aims to capitalise on the strong demand for rare earths permanent magnets created by expanding new technologies.
Hastings Technology Metals Ltd