In recognition of the Yangibana rare earths project’s strong environmental, social and governance (ESG) credentials, Hastings Technology Metals has established a green financing framework where green loans or bonds can be issued.
Det Norske Veritas has issued a second party opinion confirming the framework’s alignment with the International Capital Market Association’s green bond principles (GBP) and the Loan Market Association’s green loan principles.
“The rare earth concentrate produced from the Yangibana project will realise significant environmental benefits as critical inputs for electrification and renewable energy technologies, aligning with the GBP categories of clean transportation, renewable energy and energy efficiency,” Hastings said.
“The Yangibana project’s operations will also meet other categories including sustainable water and wastewater management. The company’s ESG credentials are aligned with the United Nations Sustainability Development Goals as a signatory of the UN Global company.”
The first stage of Yangibana’s finance process has also been completed, which follows the release of the project’s staged development feasibility study.
This has led to Hastings receiving non-binding indicative financing proposals from multiple entities such as global mining funds, senior debt, and fixed income investors to fund Yangibana in the order of the target gearing ratio of 60 per cent.
“Securing multiple indicative funding proposals is a significant milestone,” Hastings executive chair Charles Lew said.
“We are pleased by the strong response we have received from various potential financiers validating the economic and technical viability of the Yangibana project.
“As we evaluate each option, we are focused on choosing the path that best aligns with our strategic objectives and drives the best economics for the business. As we work towards finalising the funding stack, we will continue to look at opportunities to optimise our working capital and operating efficiencies to deliver value for our shareholders.”
Hastings has also established an at-the-market equity facility for up to $50 million with Alpha Investment Partners (AIP) to provide working capital funding flexibility over a four-year period as Yangibana’s financing process is advanced.
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