TORONTO, June 12,
2023 /CNW/ -
HIGHLIGHTS
- Hastings Technology Metals (Hastings) and Neo Performance
Materials (Neo) sign a non-binding Heads of Agreement (Agreement),
outlining the framework for the parties to negotiate a binding
commercial offtake agreement for the supply of rare earth
concentrate from Stage 1 of the Yangibana Rare Earths Project
(Yangibana or Project)
- In Yangibana Stage 1, Hastings would supply up to 25,000 tonnes
per annum of concentrate from Q1 CY2025 for Neo's downstream
processing facilities across Europe and Asia, to be followed by up to 10,000 tonnes
per annum of Mixed Rare Earth Carbonate upon completion of Stage
2
- The offtake arrangement for concentrate from the Yangibana
Project would provide an additional source of feedstock for NPM
Silmet OÜ (Silmet), Neo's rare earth separation facility in
Sillamäe, Estonia
- Silmet plans to produce separated rare earth oxides for Neo's
sintered rare earth permanent magnet manufacturing plant under
development in nearby Narva, Estonia, which is expected to supply the
European electric vehicle and renewable energy markets
- The contemplated offtake arrangement could cover up to 70% of
Stage 1 and 2 Yangibana production for an initial period of 10
years
- The Agreement also provides for cooperation in the areas of
evaluating joint downstream processing opportunities, technical,
and commercial collaboration
Hastings Executive Chair, Mr Charles
Lew, said:
"The signing of this Heads of Agreement builds on Hastings'
strategic investment in Neo Performance Materials, representing a
significant step forward in our vision to advance synergies between
both companies with a view to creating a fully integrated
mine-to-magnet supply chain. We share this vision with our partner
Wyloo Metals, who has been very supportive in our mine-to-magnet
strategy as we see a unique opportunity to be a major player in
building a European centric magnet supply chain during this
decade."
"This agreement with Neo represents the first step in a
strategic partnership that will establish Hastings as a reliable
supplier of rare earth feedstock to the European permanent magnets
industry, and further strengthens the staged development strategy
for the Yangibana Project, with a pathway to early project
cashflows from Stage 1 concentrate sale."
Neo Performance Materials CEO, Constantine Karayannopoulos,
said:
"This initiative supports Neo's strategic efforts to continue to
globally diversify our sources of rare earth feedstock and to
provide our customers with maximum supply chain optionality.
The Yangibana resource is an attractive potential source of
magnetic rare earths--NdPr in particular--and it could contribute
to meeting the feedstock targets of our planned Estonia magnet manufacturing facility as well
as a potential future expansion in North
America. Neo looks forward to working toward a definitive
agreement with Hastings on the material from the Yangibana
project."
STRATEGIC PARTNERSHIP
Hastings Technology Metals Ltd (ASX: HAS) (Hastings) and Neo
Performance Materials Inc (TSX: NEO) (Neo) are pleased to announce
the signing of a non-binding Heads of Agreement, signalling their
intention to take an important step forward in a potential
strategic partnership between the two companies to strengthen their
shared vision for an integrated mine-to-magnet rare earth supply
chain.
The Agreement outlines the framework for both parties to
negotiate a binding offtake agreement and pursue further downstream
technical and commercial collaboration.
Headquartered in Perth,
Western Australia (WA), Hastings
is developing the Yangibana Rare Earths Project, which involves the
initial development of a mine and beneficiation plant to produce
37,000 tonnes per annum of mixed rare earth concentrate with one of
the world's highest Neodymium and Praseodymium (NdPr) concentrate
grades. The second stage is expected to involve the construction of
a hydrometallurgical plant to produce 15,000 tonnes of Mixed Rare
Earth Carbonate (MREC) (refer to ASX Announcement dated
31 May 2023).
Based in Toronto, Ontario, Neo
is a global leader in the manufacture of rare earth magnetic
powders and Neodymium bonded magnets. Neo has a global platform
that includes ten manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, the United
Kingdom, and the United
States, as well as a dedicated research and development
centre in Singapore.
The rare earth concentrate feedstock from Yangibana would assist
in meeting Neo's growing requirements for its existing and new
facilities. This includes the only industrial-scale, commercially
operating rare earth separation facility in the Western hemisphere
in Sillamäe, Estonia. Neo has also
commenced the development of a sintered rare earth permanent magnet
manufacturing plant.
This strategic partnership builds on Hastings' 19.9% investment
in Neo and the vertical integration strategy of both companies to
supply magnets to the European electric vehicle traction motor
market and other electrification markets including wind turbines,
robotics and other advanced technologies.
KEY TERMS – HEADS OF AGREEMENT
The Agreement provides a framework for both parties to negotiate
a binding offtake agreement for the supply of up to 70%
(approximately 25,000 tonnes) of the annual concentrate production
from Stage 1 of Yangibana. The 10-year initial term would commence
with the production of Stage 1 concentrate (from Q1 CY2025) that
would be processed into MREC by a third party. It would continue
until such a time as MREC is produced by Hastings at Stage 2 of
Yangibana, when the offtake agreement is expected to evolve to
supply up to 10,000 tonnes per annum of MREC.
Other key terms of the Agreement are:
- Prior to the commencement of operations at Hastings' planned
Stage 2 hydrometallurgical plant in Onslow WA, Neo and Hastings
will cooperate to arrange processing of the Stage 1 concentrate
into MREC prior to delivery to Neo's facilities;
- Pricing for the concentrate would be determined using a
mutually agreed formula based on the Neodymium (Nd), Praseodymium
(Pr), Dysprosium (Dy) and Terbium (Tb) content in basket value,
referencing an index publishing a representative Nd, Pr, Dy and Tb
price with regards to the Total Rare Earth Oxide (TREO) content of
the delivered concentrate; and
- Toll treatment and third-party processing fees for the Stage 1
concentrate remain to be negotiated and will be applied as a set
off against the payment to Hastings.
Hastings and Neo will work towards executing a binding offtake
agreement by Q1 2024.
In addition, both parties have also committed to cooperating to
further evaluate joint downstream processing opportunities
including the production of oxides, metals and alloys. Hastings and
Neo expect to complete future studies to determine whether the end
product demand justifies future production increases from the
Yangibana mine.
This report has been approved by Hastings and Neo for release
jointly to the ASX and TSX.
ABOUT HASTINGS TECHNOLOGY METALS LIMITED
Hastings Technology Metals Limited (ASX: HAS) is a Perth based rare earths company primed to
become the world's next producer of neodymium and praseodymium
concentrate (NdPr). NdPr are vital components in the manufacture of
permanent magnets used every day in advanced technology products
ranging from electric vehicles to wind turbines, robotics, medical
applications and digital devices.
Hastings' flagship Yangibana Rare Earths Project located in the
Gascoyne and Pilbara regions of Western
Australia, contains one of the most highly valued NdPr
deposits in the world with NdPr:TREO ratio of up to 52% in some
areas of the orebody.
The Project will be developed in two stages with an initial
focus on the construction of the Yangibana mine and beneficiation
plant to produce 37,000 tonnes per annum of mixed rare earth
concentrate, followed by the construction of a hydrometallurgical
plant in Onslow with the capacity
to process 15,000 tonnes per annum of Mixed Rare Earth Carbonate.
The Yangibana Project is permitted for long-life production and
with offtake commitments and debt finance being finalised.
In 2022, Hastings acquired a strategic 19.9% shareholding in
TSX-listed Neo Performance Materials, a leading global rare earth
processing and advanced permanent magnets producer, providing the
Company with the opportunity to explore opportunities to create a
mine-to-magnet supply chain.
Hastings also owns and operates the Brockman project,
Australia's largest heavy rare
earths deposit, near Halls Creek in the Kimberley.
For more information, please visit
www.hastingstechmetals.com
ABOUT NEO PERFORMANCE MATERIALS
Neo manufactures the building blocks of many modern technologies
that enhance efficiency and sustainability. Neo's advanced
industrial materials – magnetic powders and magnets, specialty
chemicals, metals, and alloys – are critical to the performance of
many everyday products and emerging technologies. Neo's products
help to deliver the technologies of tomorrow to consumers today.
The business of Neo is organized along three segments: Magnequench,
Chemicals & Oxides and Rare Metals.
Neo is headquartered in Toronto,
Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that
includes ten manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, the United
Kingdom, and the United
States, as well as one dedicated research and development
centre in Singapore.
For more information, please visit www.neomaterials.com.
Cautionary Statements Regarding Forward-Looking Statements
(Neo)
This news release may contain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such
as "plans", "expects", "is expected", "budget",
"scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or
the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur"
or "be achieved" or the negative connotation thereof. In making the
forward-looking information in this news release, the Company has
applied certain factors and assumptions that are based on its
current beliefs as well as assumptions made by and information
currently available to the Company. Although the Company considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and the
forward-looking information in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking information.
Readers are cautioned not to place undue reliance on
forward-looking information. The Company does not intend, and
expressly disclaims any intention or obligation to, update or
revise any forward-looking information whether as a result of new
information, future events or otherwise, except as required by law.
For more information on Neo, investors should review Neo's
continuous disclosure filings that are available under Neo's
profile at www.sedar.com.
SOURCE Neo Performance Materials, Inc.