Andrew Forrest’s private company Wyloo Metals has made a $150-million cornerstone investment into Hastings Technology Metals – owner of the advanced Yangibana rare earths project in Western Australia.
Hastings will use the Wyloo proceeds, paid in secured notes, to acquire a 22.1 per cent equity interest in TSX-listed Neo Performance Materials, a leading global rare earth processing and advanced permanent magnets producer.
This will cost Hastings $C15 per share, representing a 4.7 per cent premium to Neo’s closing share price of $C14.33 on August 24. The total consideration for the acquisition is $C135 million ($150.7 million).
The notes will have a term of three years and will be exchangeable, at any time after 60 days, into Hastings ordinary shares at an exchange price of $5.50 per share.
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 per cent or more.
Wyloo chief executive officer Luca Giacovazzi said the investment fit well with the company’s long-term strategy.
“Rare earths and the permanent magnets they produce are essential enablers of the energy transition,” he said.
“There is already a shortage of these products, and the upcoming increase in magnet demand will require continued investment.
“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.”
Wyloo’s ambition is to “explore for, develop and invest in the next generation of mines that will produce the raw materials needed for a cleaner, more sustainable future”.
In 2021, Wyloo outpaced BHP in acquiring Canadian nickel explorer Noront Resources. This deal was completed in April.
Wyloo is also invested in nickel miner Mincor Resources, and has a strategic partnership with IGO that sees the two working together to advance downstream nickel-processing opportunities in Australia.