If the share price movements tell anything today, it’s probably this: The only cure for ‘lithiumitis’ (it’s a thing, really) is stay incubated from anything to do with rare earths or EV battery-related stocks until current symptoms abate.
Seemingly good results, which only weeks ago would have had the market salivating for more, are now being treated with varying degrees of disdained.
Echoing similar treatment to the good news served up by IGO (ASX: IGO) today, the market also gave Hastings Technology Metals (ASX: HAS) the cold shoulder after the Australian rare earth (REE) company’s positive update to the ASX this morning.
Hastings has entered into a binding agreement to acquire a 30% interest in the Yangibana rare earth project JV tenements currently held by Cadence Minerals (NEX/LON:KDNC; OTC: KDNCY) and its subsidiary Mojito Resources.
Cadence has agreed to sell its 30% working interest in the Yangibana project tenements to Hastings - the operator and owner of the remainder of the Yangibana Project, - for $9m.
The acquisition is expected to be settled by the issue of fully paid ordinary shares in Hastings, and at a price based on 30 days volume-weighted average price (VWAP) prior to completion.
To the uninitiated, Yangibana is a significant rare earths Project, containing substantial Neodymium and Praseodymium resources - the two most valuable rare earths - with net present value (NPV) of $1bn.
Covering around 650sqm containing some 9 mining Leases, 2 prospecting licenses and 19 exploration licenses.
in February, the Australian Government’s Northern Australia Infrastructure Facility (NAIF) approved a $140m loan facility to Hastings and Yangibana, making it the first Australian rare earth project to receive NAIF funding.
Back on February the market was lauding Hastings for going some way – via Yangibana to easing supply chain security concerns around China’s stranglehold rare earth sector.
Making Hastings even more attractive, the company has already signed numerous long-term off-take agreements.
For example, a deal with Schaefller and one with Thyssenkrupp, plus as several non-binding memorandum of understandings (MoUs), already represent around 77% of off-take during the first five years of Yangibana’s production.
By mid-year, management expected to be expected to be in full scale process plant construction.
Management expects the mixed rare earths carbonate (MREC) produced by Yangibana to meet around 6-8% of global demand for the critical minerals of neodymium and praseodymium used in the manufacture of permanent magnets.
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