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Hastings Technology Metals Ltd (ASX:HAS) has confirmed that its Yangibana Rare Earths and Niobium Project in Western Australia is one third complete, with $156 million spent on projects costs, and an additional $67 million on equipment and associated costs for its hydrometallic plant.
The project will be developed in discrete stages, with work completed so far including the building of a ‘Kurrbili’ accommodation village, completion of a 1.8 kilometre airstrip which is suitable for landing 70-seater aircrafts, six production bores, a 30 kilometre water pipeline, telecommunication towers, and more than 20 kilometres worth of site access roads.
Hastings also said that engineering and design works for key aspects of process engineering, bulk earthworks, concrete, structural engineering, mechanical and piping were well advanced at the project, and that electrical, instrumentation and control system engineering and design had already begun.
Procurement of equipment necessary for Yangibana had also progressed, including most long lead equipment for its beneficiation plant and much of the long lead equipment for its hydrometallurgical plant.
Hastings is also conducting drilling and metallurgical test work on additional critical minerals through product credits from niobium and hafnium.
In terms of funding for the development, the company highlighted a Project Loan Note facility which would underpin the phased work at Yangibana. Equator Capital Management Ltd was the initial subscriber to the Project Loan Notes – to the tune of $5 million.
Additional funding would be taken from Hastings’ cash balance of $9.9 million, as reported in its Quarterly Activities Report for the first quarter of fiscal year 2025.
In particular, the company sought to clarify a question about its issue of $150 million worth of Exchangeable Notes to Wyloo Consolidated Pty Ltd in October 2022, after receiving a purported note of default from Wyloo in November this year about the Project Loan Notes.
Following legal advice, it provided a response relating to the creation of a security interest over the acid bake rotary kiln (comprising part of the hydrometallurgical plant which is not required for the Yangibana’s Beneficiation plant). Hastings said confirms no default had occurred in relation to the Exchangeable Notes and that it has complied with the documentation of both facilities.
In a statement released on November 15, Wyloo said it maintained its position, rejecting Hastings’ assertion that no default has occurred in relation to the Wyloo Exchangeable Notes, and requested that Hastings’ Board of Directors explain how it planned to repay these notes, in addition to clarifying Hastings’ position regarding the insolvency and on what reasonable grounds on which the Board consider the entity to be a ‘going concern’.
Hastings has been trading at 28.5 cents.
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