Signs Off-Take Agreement with Sky Rock Rare Earth
Sydney, Nov 29, 2018 AEST (ABN Newswire) - Hastings Technology Metals Limited (
ASX:HAS) ("Hastings" or the "Company") is pleased to announce that it has signed an agreement with Sky Rock Rare Earth New Materials Co Ltd (Sky Rock) for the supply of mixed rare earths carbonate (MREC) from its Yangibana Rare Earths Project conditional upon production commencing in about 2 years time.
- Execution of Off-take Contract for supply of Mixed Rare Earths Carbonate from Yangibana Rare Earths Project with Sky Rock Rare Earth New Materials Co Ltd of Boatou, China
- Five year fixed term contract for Annual Purchase Quantity of 2,500 tonnes of Carbonate each year with two year initial ramp-up supply flexibility
- Pricing mechanism will be based on "90 days mid" EXW (Ex Works) China price of Rare Earth Oxide in RMB/kg (published by Asian Metal) contained in the MREC product prior to shipping via FOB Fremantle Port, Western Australia
- Purchaser to supply Irrevocable Letter of Credit sufficient to cover 100% of the FOB price of the Annual Purchase Quantity
- Further milestone in securing markets for Yangibana rare earths produce
Key conditions of the Off take agreement are:
- Five year fixed term contract for Annual Purchase Quantity of 2,500 tonnes of Carbonate each year with two year initial ramp-up supply flexibility.
- Pricing mechanism referenced to Asian Metals' published "90 days mid" EXW (Ex Works) China price, in RMB/kg of each Rare Earth Oxide contained in the MREC product prior to shipping via FOB Fremantle Port Western Australia.
- Independent sampling and analysis at Fremantle loading Port prior to shipment.
- Purchaser to supply Irrevocable Letter of Credit (issued by member of London Clearing House acceptable to Seller), payable at sight, sufficient to cover 100% of the FOB price of the Annual Purchase Quantity.
- All payments will be made in USD in immediately available funds.
- Governing law for validity, construction and performance of Off-take Contract in accordance with Laws of England and Wales and subject to Singapore International Arbitration Centre Rules.
Charles Lew, Executive Chairman of Hastings commented that "execution of this 5-year mixed rare earths carbonate contract is another important step towards funding and development of the Yangibana Rare Earths Project so that we can supply high grade Neodymium and Praseodymium (NdPr) to our various international offtake customers."
About 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.
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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