Offtake MOU Signed with Thyssenkrupp Raw Materials GmbH
Sydney, Feb 28, 2018 AEST (ABN Newswire) - Hastings Technology Metals Limited's (
ASX:HAS) (Hastings or the Company) is pleased to advise that it has signed a major non- binding offtake Memorandum of Understanding (MOU) with thyssenkrupp Raw Materials GmbH. Under the MOU the parties have outlined their intent to enter into a binding commercial offtake agreement for the sale and purchase 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 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.
INTRODUCTION
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 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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