Hastings Technology Metals has received a $7 million strategic investment which will see JL Mag Rare-Earth Co’s subsidiary, JL Mag Green Tech, own 9.8. per cent of Hastings’ enlarged issued share capital.
JL Mag Rare-Earth Co is a leading producer of rare earths permanent magnets globally. At the completion of the strategic investment, Vice President of JL Mag, Han Yu, will join the Board of Hastings.
The strategic investment is at a premium of 22.8 per cent to Hastings’ ten-day volume weighted average price (VWAP) of $0.2932 and 38.8 per cent premium to the 30-day VWAP of $0.2593 up to and including 5 July 2024.
The investment proceeds will be used to advance the Yangibana Rare Earths Project (Yangibana Project) and supplements the $16 million previously raised in April 2024 from the completed renounceable rights issue.
Hastings has already completed the construction of the mine infrastructure for the Yangibana Project. The Company is planning to complete the project debt funding and start construction of its beneficiation plant in Q4 2024 to produce 37,000t per annum of mixed rare earth concentrate scheduled for first production in H1 2026.
Hastings can offer JL Mag to participate in future capital raisings to maintain its 9.8 per cent shareholding, subject to regulatory and shareholder approvals.
Hastings’ Executive Chairman, Charles Lew, said he was very pleased to welcome JL Mag as a long-term, strategic investor in Hastings.
“JL Mag’s position as the world’s number one producer of high-performance rare earths permanent magnets makes it a highly valued partner for Hastings as we move the Yangibana Rare Earths Project forward into production.
“This year has seen significant cost reductions and improved economics at the Yangibana Project. To be able to attract support from JL Mag is a strong vote of confidence in the management of Hastings and our long-term prospects. We will continue to advance the Yangibana Project into beneficiation process plant construction and production and create long-term value for our shareholders.”
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