JL MAG Green Tech, a JL Mag Rare-Earth Co subsidiary, has invested $7 million in Hastings Technology Metals, owner of the Yangibana rare earths project in Western Australia.
Under the investment, JL Mag Rare-Earth will purchase 19,647,000 fully paid new ordinary shares in Hastings at $0.36 per share.
Upon completion, JL Mag Rare Earths will own a 9.8 per cent stake in Hastings and JL Mag vice president Han Yu will join the Hastings board.
The funds will be used to advance Yangibana towards production and supplements the $15.9 million raised from the completed renounceable rights issue announced in March.
“I am very pleased to welcome JL Mag as a long-term, strategic investor in Hastings,” Hastings executive chairman Charles Lew said.
“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.”
The Yangibana project is expected to have an initial 17-year mine life and reach first production in the first half of 2026.
Construction of the mine infrastructure at Yangibana has been finalised, with 32 per cent of the total project cost completed.
Hastings plans to complete the Yangibana project debt funding and start construction of its beneficiation plant in the fourth quarter of 2024 to produce 37,000 tonnes of mixed rare earth concentrate per annum.
“This year has seen significant cost reductions and improved economics at the Yangibana project,” Lew said.
“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.”
In the future, Hastings can offer JL Mag Rare Earths opportunities to participate in future capital raisings to maintain its 9.8 per cent shareholding, subject to regulatory and shareholder approvals.
