Australian mining firm Hastings Expertise Metals has closed its acquisition of a 19.9% stake in Neo Efficiency Supplies for C$134.6m ($97m).
Beneath a share buy settlement signed in August with an affiliate of Oaktree Capital Administration, Hastings’ wholly-owned arm HTM Investments (One) purchased 8.97 million widespread shares in Neo.
Neo is engaged within the downstream processing of uncommon earth parts and the manufacturing of superior supplies, together with everlasting magnets.
The deal gives Hastings publicity to Neo’s magnetic supplies enterprise, in addition to offering a platform to discover potential partnership preparations.
On the time of signing the share buy settlement, Hastings govt chairman Charles Lew mentioned: “The acquisition of the Neo stake represents an vital strategic milestone for Hastings, offering the Firm and its shareholders with a singular alternative to take additional steps in direction of realising the Hastings 2.0 technique.”
Hastings mentioned that neither it nor HTM Investments had plans to purchase any extra Neo shares.
Based mostly available on the market and different situations, one of many companies might purchase additional Neo widespread shares sooner or later.
They may additionally promote shares through market transactions, public choices, personal agreements or different means.
Hastings at the moment owns two main assets in Western Australia, particularly the Yangibana and Brockman tasks.
Overlaying an space of round 650km², the Yangibana undertaking is situated in Western Australia’s Gascoyne area and holds substantial Neodymium and Praseodymium assets.
The Brockman undertaking contains mining lease purposes masking ten prospecting licences and one exploration licence.
It’s situated 18km south-east of the historic gold mining centre of Halls Creek within the East Kimberley Area.
Earlier this yr, Hastings agreed to purchase a 30% stake within the Yangibana three way partnership tenements for A$9m ($6.2m).
The corporate may have a 100% stake throughout the entire Yangibana uncommon earth tenement package deal following the acquisition.
