Signs Off-Take Agreement with Sky Rock Rare Earth
- Execution of Off-take Contract for supply of Mixed Rare Earths Carbonate from Yangibana Rare Earths Project with Sky Rock Rare Earth New Materials Co Ltd of Boatou, China
- Five year fixed term contract for Annual Purchase Quantity of 2,500 tonnes of Carbonate each year with two year initial ramp-up supply flexibility
- Pricing mechanism will be based on "90 days mid" EXW (Ex Works) China price of Rare Earth Oxide in RMB/kg (published by Asian Metal) contained in the MREC product prior to shipping via FOB Fremantle Port, Western Australia
- Purchaser to supply Irrevocable Letter of Credit sufficient to cover 100% of the FOB price of the Annual Purchase Quantity
- Further milestone in securing markets for Yangibana rare earths produce
Key conditions of the Off take agreement are:
- Five year fixed term contract for Annual Purchase Quantity of 2,500 tonnes of Carbonate each year with two year initial ramp-up supply flexibility.
- Pricing mechanism referenced to Asian Metals' published "90 days mid" EXW (Ex Works) China price, in RMB/kg of each Rare Earth Oxide contained in the MREC product prior to shipping via FOB Fremantle Port Western Australia.
- Independent sampling and analysis at Fremantle loading Port prior to shipment.
- Purchaser to supply Irrevocable Letter of Credit (issued by member of London Clearing House acceptable to Seller), payable at sight, sufficient to cover 100% of the FOB price of the Annual Purchase Quantity.
- All payments will be made in USD in immediately available funds.
- Governing law for validity, construction and performance of Off-take Contract in accordance with Laws of England and Wales and subject to Singapore International Arbitration Centre Rules.
Charles Lew, Executive Chairman of Hastings commented that "execution of this 5-year mixed rare earths carbonate contract is another important step towards funding and development of the Yangibana Rare Earths Project so that we can supply high grade Neodymium and Praseodymium (NdPr) to our various international offtake customers."
About Sky Rock
Sky Rock, based in Baotou (the largest industrial city in Inner Mongolia), China, is a company set up in 2006 that is involved in the production of high temperature tolerance NdFeB permanent magnets. Its main products are Sintered Neodymium Magnets and Sintering Samarium Cobalt Magnets. Its products are sold to computer, mobile phone, motor and generator, automobile (EV/HEV), audio-video system, office automation and many other major international companies worldwide. The company has strong technical competence and invests substantially in R&D for rare earth usage in magnets and its long term sustainability of production.
About Hastings Technology Metals Ltd
- The Yangibana Project hosts Probable Reserves totaling 5.15 million tonnes at 1.12% TREO including 0.45% Nd2O3+Pr6O11 within JORC Resources totalling 21.0 million tonnes at 1.17% TREO (comprising Measured Resources of 3.9 million tonnes at 1.19% TREO, Indicated Resources of 8.6 million tonnes at 1.25% TREO and Inferred Resources of 8.4 million tonnes at 1.09% TREO), including 0.40% Nd2O3+Pr6O11.
- The Brockman deposit contains JORC Indicated and Inferred Resources totalling 41.4 million tonnes (comprising 32.3mt Indicated Resources and 9.1mt Inferred Resources) at 0.21% TREO, including 0.18% HREO, plus 0.36% Nb2O5 and 0.90% ZrO2.
- Rare earths are critical to a wide variety of current and new technologies, including smart phones, electric vehicles, wind turbines and energy efficient light bulbs.
- The Company aims to capitalise on the strong demand for rare earths permanent magnets created by expanding new technologies.
Hastings Technology Metals Ltd