Hastings Technology Metals Ltd.: Signs Project Finance Mandate with KfW IPEX-Bank
Sydney - Hastings Technology Metals Ltd. (ASX:HAS) ("Hastings" or the "Company") is pleased to announce that it has executed an exclusive mandate with the German bank, KfW IPEX-Bank GmbH ("KfW IPEX-Bank") to provide project finance loan advisory services in relation to securing approval from Euler Hermes Aktiengesellschaft ("Euler Hermes") as mandated by the German Federal Government as administrators of the Untied Loan Guarantee scheme ("UFK Cover"). Upon approval from Euler Hermes and the authorised committees of KfW IPEX-Bank, KfW IPEX-Bank has indicated that it will provide senior debt facilities of up to A$250m for the project.Highlights:
- Exclusive mandate executed with German KfW IPEX-Bank for project finance loan advisory services
- KfW IPEX-Bank has provided indicative terms for senior debt of up to A$250 million for the project (conditional upon UFK Cover being obtained)
- KfW IPEX-Bank to make application to Euler Hermes for German Government Untied Loan Guarantee Cover
Hastings has previously announced offtake MOU with German and Chinese companies to supply its high grade Neodymium and Praseodymium (NdPr) to its customers. It is able to feed its mixed rare earth carbonate into the German and Chinese supply chain, in particular for the automotive industry. For sales to German customers, the Company is in principle eligible for UFK Cover due to the strategic importance to Germany of securing long term future supplies of NdPr, a critical mineral necessary in the manufacture of permanent magnets for electrical motors.
The UFK Cover scheme is a German government backed insurance cover to lenders and is administered by Euler Hermes. The portion of total project debt that qualifies for UFK Cover is generally provided on attractive terms including lower interest rates and longer loan tenure.
KfW IPEX-Bank, a wholly owned subsidiary of KfW Group is a leading German export and project finance specialist with significant experience in the debt financing of mining projects worldwide. KfW IPEX-Bank's engagement is to assist Hastings in obtaining approval from Euler Hermes for UFK Cover. In addition, KfW IPEX-Bank has provided indicative senior debt terms to Hastings including a targeted total senior debt amount of up to A$250 million.
The UFK Cover and subsequent senior debt project financing is subject to a detailed due diligence process. The execution of this engagement with KfW IPEX-Bank is an important step in support of the Yangibana Rare Earths project.
Charles Lew, Executive Chairman of Hastings commented that "the signing of this mandate with the German KfW IPEX-Bank is yet another important milestone in getting the Yangibana rare earths mine financed and built. We are pleased to be a long term supplier of NdPr technology metals to German companies seeking permanent magnets and the interest of KfW IPEX-Bank to assist in the financing underscores the strategic value of our project to Germany. "
About Hastings Technology Metals Ltd:
Hastings Technology Metals Ltd. (ASX:HAS) is currently developing a rare earths mine and processing plant at Yangibana in the Gascoyne Region of Western Australia. The processing plant is anticipated to commence production of MREC in late 2019. Hastings has completed both beneficiation and hydrometallurgy pilot plants, in the process producing MREC samples which are high in neodymium and praseodymium content. These are critical materials for the production of permanent magnets and other technology applications. The MREC will be capable of being further separated and refined to produce a number of individual rare earth oxides outside of Australia. Hastings estimates an annual production quantity of 15,000 tonnes of MREC which it will sell to offtake partners globally.
Source: Hastings Technology Metals Ltd.
Contact:
Charles Lew Executive Chairman
T: +65-9790-9008
Guy Robertson Finance Director
T: +61-9078-7674