ASX-listed Hastings Technology Metals has announced a binding agreement with Wyloo Consolidated Investments to form a joint venture (JV) over the Yangibana rare earths and niobium project, giving Wyloo a 60% stake in the project and management control as it moves toward development.

Hastings will retain a 40% interest in the unincorporated JV, while Wyloo will lead efforts on project development, financing and technical delivery. 

The agreement follows a non-binding term sheet announced in February.

The JV aims to bring Yangibana to a final investment decision and production, delivering a rare earths and niobium operation in Western Australia’s Gascoyne region.

“We are extremely pleased to have entered into the transaction agreement with Wyloo for the conditional sale of an interest in the Yangibana project and formation of a JV. The JV will significantly de-risk Yangibana and reduce the capital contribution required from Hastings’ shareholders, whilst enabling Hastings to maintain a meaningful interest in the Yangibana project,” said Hastings executive chairperson Charles Lew.

“With substantial investment in supporting infrastructure having been completed at Yangibana, the JV will be well placed to move forward with the construction and development of a global Tier 1 rare earths and niobium project,” Lew said. 

“Going forward, Hastings will focus on its Ark Gold and Brockman niobium and heavy rare earths projects, which are expected to generate additional long-term value to shareholders.”

Wyloo CEO Luca Giacovazzi welcomed the partnership. “We look forward to working with the Hastings team as we transition the world-class Yangibana project to the Yangibana JV over the coming months. As rare earths continue to play a key role in the energy transition, Yangibana will be well placed to become a globally significant supplier of green critical minerals,” he said.

As one of the most advanced rare earths projects in the world, Yangibana will be able to produce concentrate within 18 months from a final investment decision (FID).

“Together with our 19.9% stake in Neo Performance Materials, we are excited to explore the potential of this rare earths mine to magnet supply chain as part of our expanded portfolio of critical minerals projects,” Giacovazzi said.

As part of the transaction, Wyloo will cancel all outstanding exchangeable notes owed by Hastings, effectively retiring the debt early ahead of its October 2025 maturity. Hastings will also pay A$7.4-million to Wyloo, representing the value of remaining Neo Performance Materials shares previously transferred as part of a February settlement.

Wyloo will fund its pro-rata share of the remaining capital costs, with Hastings' equity requirement expected to reduce to A$32-million at FID, based on a 50:50 gearing structure. Wyloo has an option to increase its stake in the project to 70%.

Completion of the transaction remains subject to shareholder and regulatory approvals, with a general meeting expected in June.

The JV covers both Stage 1 of Yangibana’s beneficiation plant and its Stage 2 hydrometallurgical plant.