Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement by Hastings Technology Metals (ASX: HAS) (“Hastings”) that it has signed a non-binding Memorandum of Understanding (“MoU”) with the Estonian Government’s investment agency, Ettevotluse ja Innovatsiooni Sihtasutus (“EIS”) to collaborate on a joint scoping study into the potential development of downstream rare earth processing capabilities in Estonia.
Following the release of the Staged Development Feasibility Study in May 2023, Hastings’ primary focus is the construction of the Yangibana Rare Earths Project’s (“Yangibana Project”) mine and beneficiation plant to produce a rare earth mineral concentrate for export to its offtake partners and enable a quicker pathway to early project cashflows.
In parallel, Hastings continues to assess the potential to capture more of the rare earth value chain through downstream processing of its concentrate to produce a mixed rare earth carbonate.
Highlights:
- Hastings and the Estonian Government – a European Union (“EU”) member country – will commence a joint study on a hydrometallurgical plant for downstream processing of rare earth concentrate as part of Stage 2 of the Yangibana Rare Earths Project
- Joint study builds on Hastings’ 21.15% investment in TSX-listed Neo Performance Materials Inc. which has an operating rare earth separation facility and a rare earth permanent magnet manufacturing plant under construction in Estonia
- Strategic alignment with the vision of Hastings, the Estonian Government and the EU to establish an integrated mine-to-magnet European supply chain, developing capabilities to provide strategic materials to European original equipment manufacturers for electric vehicle traction motors and renewable energy technologies
- Memorandum of Understanding with the Estonian Government’s investment agency Ettevotluse ja Innovatsiooni Sihtasutus outlines objectives including potential grants, funding, fiscal and tax incentives.
During the September quarter, Hastings completed early infrastructure works at the Yangibana Project, including the Kurrbili Accommodation Village, Yangibana Airstrip, access roads, production borefields, water pipelines and clearing and grubbing of the entire plant site.
Link here to view the full Hastings announcement
Hastings Executive Chairman Charles Lew commented: “Hastings is delighted to establish this partnership with the Estonian Government to evaluate downstream processing opportunities, as a natural extension of our ongoing work to maximise value from the Yangibana Rare Earths Project. This is also builds on our strategic investment into Neo Performance Materials to advance our vision of building a rare earth magnet supply chain for the European market, in line with the ongoing focus from European Union member states such as Germany to secure alternative sources for critical raw materials.”
EIS’s Head of Foreign Investment Department, Joonas Vanto, said: “We are pleased to welcome Hastings to conduct a feasibility study for the establishment of a hydrometallurgical plant in Estonia. The establishment of such a plant would help to further develop the value chain of permanent magnets and electrification that is already operating here and would support Estonia’s and the European Union’s ambition to achieve climate neutrality.”
Cadence shareholding in Hastings
On 25 January 2023, Cadence completed the sale of its 30% stake in several mineral concessions forming part of the Yangibana Rare Earths project for a consideration of 2.45 million Hastings shares. This consideration was a premium over the Net Present Value (“NPV”) of the Cadence portion of the mineable material, based on the definitive feasibility (“DFS”) updated by Hastings on 21 February 2022. Currently Cadence holds approximately 1% of Hastings issued share capital.
The full announcement concerning the Yangibana sale is available here.
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For further information contact:
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| Cadence Minerals plc | +44 (0) 20 3582 6636 |
| Andrew Suckling | |
| Kiran Morzaria | |
| WH Ireland Limited (NOMAD & Broker) | +44 (0) 20 7220 1666 |
| James Joyce | |
| Darshan Patel | |
| Fortified Securities – Joint Broker | +44 (0) 20 3411 7773 |
| Guy Wheatley | |
| Brand Communications | +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |