Wyloo Metals has made a A$150 million cornerstone investment in Australian rare earths developer, Hastings Technology Metals Ltd.
Wyloo’s investment is in the form of A$150 million in secured, exchangeable notes, the proceeds of which will be used by Hastings to acquire a 22.1% equity interest in TSX-listed Neo Performance Materials Inc. (Neo) from an affiliate of Oaktree Capital Management, L.P.
Wyloo will also have the right to appoint a nominee director to the Board of Hastings and retain that nominee while Wyloo’s equity interest in Hastings is 12.5% or more (based on the interest that Wyloo would hold were the Notes exchanged into shares).
Wyloo Metals CEO, Luca Giacovazzi, said the investment fit well with the company’s long-term strategy to invest in the critical minerals that support renewable energy generation and electrification.
“Rare earths and the permanent magnets they produce are essential enablers of the energy transition. There is already a shortage of these products, and the upcoming increase in magnet demand will require continued investment,” he said.
“This transaction with Hastings spans the value chain, from mining to magnet manufacturing. As the owner of the only commercial rare earth metals facility in Europe, Neo is strategically placed to help Europe meet its goal to become climate neutral by 2050.
“We’re pleased to be investing in the stable and secure supply of minerals and permanent magnets that are inputs in essential products like electric vehicles and wind turbines.
“Wyloo is delighted to be partnering with Hastings as a cornerstone investor and we look forward to joining the Board and working alongside the company as it delivers upon its strategy.”
Hastings is an Australian rare earths company positioned to become the world’s next producer of neodymium and praseodymium concentrate used in the production of permanent magnets.
For further information please visit: https://www.wyloometals.com/
