First Offtake Agreement Signed - Baotou Sky Rock Rare Earth
Sydney, Aug 1, 2017 AEST (ABN Newswire) - Hastings Technology Metals Limited (
ASX:HAS) (Hastings or the Company) is pleased to advise that it has signed the first Memorandum of Understanding (MOU) with Baotou Sky Rock Rare Earth New Material Co. Ltd (Sky Rock). Under the MOU the parties have outlined their intent to enter into a binding commercial offtake agreement for the sale by Hastings and purchase by Sky Rock of Mixed Rare Earth Carbonate ("MREC"), which will be produced from Yangibana, Western Australia. The framework for the commercial offtake agreement is set out in the MOU, and the final terms and conditions will be formalised in a contract.
HIGHLIGHTS
- Hastings announces first MOU with Baotou Sky Rock for the future supply of Mixed Rare Earth Carbonate from Hastings' Yangibana project in Western Australia.
- The parties have agreed to enter discussions to formalise a commercial offtake agreement for Hastings to sell 2,500 tonnes of Mixed Rare Earth Carbonate (MREC) per annum to Baotou Sky Rock.
- The signing of this first MOU reflects the strong level of interest and demand from potential customers and off-take partners in the Yangibana project.
INTRODUCTION
The Parties have undertaken to negotiate in good faith to reach agreement for a commercial offtake contract within 12 months from the date of the MOU. Pricing for the MREC will be based on a formula taking into account prevailing market prices prior to shipment.
Charles Lew, Hastings Executive Chairman, said "This first MOU for an offtake agreement with Sky Rock is a significant milestone for the Company. The high NdPr content of our ore body is gaining firm recognition in the rare earth and magnets industry.
Further offtake agreements are expected to follow, which will reinforce the Company's financing plan to fund the development of the mine and the construction of the processing plant".
The Parties have additionally acknowledged that any commercial offtake agreement is contingent on Hastings starting operations and production of MREC from the Yangibana mine, and with any additional conditions usually included in commercial off-take contracts.
Hastings estimates an annual production quantity of 15,000 tonnes of MREC, which it will sell to offtake partners, with production projected to commence in 2H 2019.
Sky Rock
Sky Rock, based in Baotou (the largest industrial city in Inner Mongolia), China, is a company set up in 2006 that is involved in the production of high temperature tolerance NdFeB permanent magnets. Its main products are Sintered Neodymium Magnets and Sintering Samarium Cobalt Magnets. Its products are sold to computer, mobile phone, motor and generator, automobile (EV/HEV), audio-video system, office automation and many other major international companies worldwide. The company has strong technical competence and invests substantially in R&D for rare earth usage in magnets and its long term sustainability of production.
Hastings Technology Metals
Hastings 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 2H 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 refined and treated to produce a number of separated rare earth oxides outside of Australia. Hastings estimates an annual production quantity of 15,000 tonnes of MREC, which it will sell to offtake partners.
The Yangibana Project hosts JORC Resources totalling 17.02 million tonnes at 1.27% TREO (comprising Measured Resources of 2.92 million tonnes at 1.04% TREO, Indicated Resources of 7.19 million tonnes at 1.43% TREO and Inferred Resources of 6.90 million tonnes at 1.21% TREO), including 0.41% Nd2O3+Pr6O11.
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is advancing its Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production. The proposed beneficiation and hydro metallurgy processing plant will treat rare earths deposits, predominantly monazite, hosting high neodymium and praseodymium contents to produce a mixed rare earths carbonate that will be further refined into individual rare earth oxides at processing plants overseas.
Neodymium and praseodymium are vital components in the manufacture of permanent magnets which is used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, medical applications and others. Hastings aims to become the next significant producer of neodymium and praseodymium outside of China.
Hastings holds 100% interest in the most significant deposits within the overall project, and 70% interest in additional deposits that will be developed at a later date, all held under Mining Leases. Numerous prospects have been identified warranting detailed exploration to further extend the life of the project.
Brockman Project
The Brockman deposit, near Halls Creek in Western Australia, contains JORC Indicated and Inferred Mineral Resources, estimated using the guidelines of JORC Code (2012 Edition).
The Company is also progressing a Mining Lease application over the Brockman Rare Earths and Rare Metals Project.
Hastings aims to capitalise on the strong demand for critical rare earths created by the expanding demand for new technology products.
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