Cadence Minerals plc (LON:KDNC) has noted that Hastings Technology Metals (ASX:HAS), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia, has announced that that it has received approvals for a significant portion of the debt package required to fund construction of the Yangibana Rare Earths Project, in the Gascoyne region of Western Australia.
· Northern Australia Infrastructure Facility (NAIF) approves $140 million loan facility with 12½-year tenor, subject to pre-completion conditions.
· NAIF loan is a critical component of the Yangibana Rare Earths Project funding strategy underpinning finalisation of remaining funding requirements.
· Yangibana is the first Australian rare earths project to receive NAIF funding.
· First drawdown expected to occur in early 2023, aligned to Yangibana funding schedule.
· NAIF loan forms part of A$300-400 million of total debt financing required for Yangibana.
· Yangibana early works construction and design for long-lead items underway in anticipation of plant construction commencing in September 2022 Quarter.
· Hastings is fostering a lower carbon future and renewable energy solutions through the Yangibana rare earths project
The Federal Government’s Northern Australia Infrastructure Facility (NAIF) has agreed to supply a A$140 million, 12½-year tenor loan facility for the development of Yangibana. The loan has been approved by the NAIF Board and endorsed by the Federal Minister for Northern Australia, the Honourable David Littleproud. The NAIF loan forms part of the A$300-400 million of total debt funding required for Yangibana and is aligned with Australia’s Critical Minerals Strategy and the Western Australian Government’s Future Battery Industry Strategy.
The Yangibana project, which comprises a mine and beneficiation plant at the Yangibana site and a hydrometallurgical plant at the Ashburton North Strategic Industrial Area (ANSIA) near Onslow, will become Australia’s second rare earths producer and expands the country’s strategic capability in downstream processing of rare earths minerals.
The Federal Government’s commitment to Yangibana comes at a significant inflexion point for the global rare earths sector amid a drive by rare earths magnet-end users to secure responsible and reliable sources of supply.
The full HAS release can be found at: https://www.investi.com.au/api/announcements/has/92de7fbd-5d2.pdf
The Financial Times also commented on the story. The link can be found here:
Hastings Technology Metals’ Executive Chairman Charles Lew commented: “Hastings is delighted to have received the Federal Government’s support, through the Northern Australia Infrastructure Facility, for the Yangibana rare earths project. This is the Commonwealth’s first project financing package for the construction of a rare earth mine and production plant in Australia and supports the rapid development worldwide of decarbonisation technologies in e-mobility and energy. In view of the UN Climate Change Conference (COP26) held in November 2021, Hastings is proud to be at the forefront of this significant global transition to a lower carbon future and aims to be a part of the global efforts towards sustainability.”
“The commitment by NAIF will enable Hastings to finalise the funding requirements for Yangibana’s development and move into full-scale construction throughout 2022, with the objective of delivering first production by 2024. Yangibana is an amazing rare earths opportunity that will supply the world’s highest composition neodymium and praseodymium concentrate to Tier 1 customers in Europe and Asia.”
“This is an exciting time not just for Hastings but for Australia’s emerging rare earths sector. We look forward to finalising the funding arrangements that will enable the Hastings Board to make a final investment decision in the coming months.”
Relevance to Cadence Minerals Holdings in the Yangibana Project:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). The current mining schedule indicates that the joint venture areas are scheduled to be mined in years 12 to 15 on the mine plan. Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at: