JL Mag's Strategic Investment in Hastings Technology Metals: A $7 Million Boost
HAS (HAS) Share Update July 2024 Monday 8th
JL Mag Invests $7 Million in Hastings Technology Metals
In a significant move for the rare earths market, JL Mag Rare-Earth Co., Limited, the world’s leading producer of rare earth permanent magnets, has announced a $7 million strategic investment in Hastings Technology Metals Limited. This investment is set to propel Hastings' Yangibana Rare Earths Project in Western Australia towards production.
Instant Summary:
- JL Mag to invest $7 million in Hastings Technology Metals.
- Investment involves 19.6 million shares at $0.36 per share.
- JL Mag will own 9.8% of Hastings' enlarged issued share capital.
- Investment price is at a 22.8% premium to Hastings' 10-day VWAP.
- Funds will advance the Yangibana Rare Earths Project in Western Australia.
Investment Details
JL Mag Rare-Earth Co., Limited, through its subsidiary JL Mag Green Tech (Hong Kong) Company Limited, will make a $7 million strategic investment in Hastings Technology Metals Limited. This investment involves the subscription of 19,647,000 fully paid new ordinary shares at $0.36 per share, representing a 9.8% shareholding in Hastings based on the enlarged share capital.
The investment price is at a premium of 22.8% to Hastings’ 10-day volume weighted average price (VWAP) of $0.2932 and a 38.8% premium to the 30-day VWAP of $0.2593 up to and including 5 July 2024. This strategic move highlights JL Mag's confidence in Hastings' management and the long-term prospects of the Yangibana Rare Earths Project.
Project Advancements
The proceeds from this investment will be used to advance the Yangibana Rare Earths Project in Western Australia. Hastings has already completed the construction of the mine infrastructure and is planning to complete the project debt funding and start construction of its beneficiation plant in Q4 2024. The plant aims to produce 37,000 tonnes per annum of mixed rare earth concentrate, with first production scheduled for H1 2026.
Strategic Partnership
JL Mag, listed on both the Hong Kong Securities Exchange and Shenzhen Stock Exchange, is the world’s number one producer of high-performance rare earth permanent magnets by volume. The company is also a leader in the application of Grain Boundary Diffusion technology for magnets. JL Mag’s global customer base includes top manufacturers in the NEV, VFAC compressor, and wind turbine generator sectors.
Han Yu, Vice President of JL Mag, will join the Board of Hastings, further solidifying the strategic partnership between the two companies. This collaboration is expected to create long-term value for Hastings' shareholders and advance the Yangibana Project into production.
This strategic investment by JL Mag is a strong vote of confidence in Hastings Technology Metals and its Yangibana Rare Earths Project. The premium pricing of the shares indicates a positive outlook for Hastings' future. The funds will accelerate the development of the Yangibana Project, potentially increasing Hastings' market value and stock price as the project progresses towards production.
Investor Reaction:
Investors and analysts have responded positively to the announcement, viewing it as a significant milestone for Hastings. The involvement of JL Mag, a global leader in rare earth magnets, is seen as a strategic advantage that could enhance Hastings' market position and project execution capabilities.
Conclusion:
Investors should keep an eye on the progress of the Yangibana Rare Earths Project and the strategic developments between Hastings and JL Mag. This partnership could lead to significant growth opportunities and long-term value creation. Subscribe to our newsletter for regular updates on Hastings Technology Metals and other stock market news.