Wyloo has strengthened its position in the global rare earths sector through two major strategic moves. The company has entered into exclusive negotiations with Hastings Technology Metals Ltd (ASX:HAS) to form an Unincorporated Joint Venture (UJV) for the Yangibana Rare Earths and Niobium Project. In a parallel transaction, Wyloo has acquired a 19.99% stake in Neo Performance Materials Inc. (TSX:NEO), becoming its largest shareholder.
These developments position Wyloo as a major player in the rare earths supply chain, spanning mining, processing, and advanced manufacturing.
Figure 1: Wyloo’s Cassini Mine located in the Southern Goldfields region of Western Australia
Wyloo Acquires 19.99% Stake in Neo for A$79.8 Million
Wyloo has acquired 8,350,311 common shares in Neo Performance Materials from Hastings for A$79.8 million. This private sale involved Wyloo cancelling Exchangeable Notes of the same value that were previously issued by Hastings.
Following this transaction, Wyloo now holds a significant stake in Neo, a leading processor of rare earth materials and an advanced manufacturer of permanent magnets. Hastings continues to own 623,816 common shares (1.49%) in Neo, which remain pledged as security for outstanding Exchangeable Notes. Wyloo has confirmed that it has no control over these remaining shares and no agreement to acquire them.
Also Read: Tropical Cyclone Threat Grows in Queensland as Two Systems Develop Off Australia’s Coast
Wyloo CEO Luca Giacovazzi said the acquisition strengthens the company’s long-term strategy in the rare earths sector.
“We are also pleased to acquire a 19.99 per cent equity stake in Neo, a leading, global rare earths processing and advanced permanent magnets producer.
We look forward to working more closely with both Hastings and Neo across the mine to magnet supply chain as we expand our critical minerals portfolio.”
Neo operates advanced manufacturing and processing facilities in North America, Europe, and Asia, making it a key player in the global rare earths supply chain.
Yangibana Joint Venture: Key Details and Terms
Wyloo and Hastings have signed an exclusive, non-binding term sheet to negotiate a UJV Agreement for the Yangibana Rare Earths and Niobium Project. The UJV will cover both Stage 1 and Stage 2 of the project, including a hydrometallurgical plant.
Key terms of the proposed joint venture include:
- Wyloo to hold a 60% participating interest and act as UJV Manager and Operator
- Hastings’ subsidiary, Yangibana Jubilee Pty Ltd, to hold a 40% participating interest
- Wyloo has an option to increase its stake to 70%
- The remaining Exchangeable Notes to be cancelled upon UJV formation
- Hastings to settle the value of its remaining 623,816 Neo shares via a cash payment to Wyloo
Both companies aim to finalise the UJV Agreement and other binding documents by March 2025, subject to regulatory approvals.
Giacovazzi highlighted the long-term potential of the project.
“This is an exciting time to be a major partner in a multi-decade critical minerals project such as Yangibana.
Yangibana is one of the most advanced rare earths projects in Australia and will become a globally significant source of NdPr, a critical component in the manufacture of permanent magnets, as well as a producer of Niobium and other by-products critical to the energy transition.”
Figure 2: Yangibana Airstrip
Strategic Importance of Yangibana
Yangibana is one of Australia’s most advanced rare earths developments. It is expected to become a globally significant producer of neodymium (Nd) and praseodymium (Pr), essential materials for permanent magnets. The project will also produce niobium, a metal used in high-performance alloys and energy technologies.
- Neodymium and praseodymium (NdPr) are critical in manufacturing permanent magnets for electric vehicles (EVs), wind turbines, and other clean energy technologies
- Niobium is widely used in superconductors, batteries, and aerospace components
Yangibana’s production will play a key role in securing a stable supply of rare earths outside China, which currently dominates global rare earths processing.
Global Rare Earths Market Growth
The global rare earths market is expected to grow at a compound annual growth rate (CAGR) of 10.6% from 2024 to 2030. Demand is increasing due to the expansion of EV production, renewable energy infrastructure, and high-tech applications.
- The global rare earths market was valued at A$11.4 billion in 2023
- NdPr oxide prices reached A$150 per kilogram in 2024
- The permanent magnet market is projected to be worth A$54 billion by 2028
As governments worldwide focus on securing critical mineral supply chains, projects like Yangibana are expected to benefit from increased investment.
Wyloo’s investment aligns with Australia’s strategy to become a key supplier of critical minerals, reducing reliance on overseas processing.
Wyloo’s Future Plans and Investment Strategy
Wyloo has stated that it intends to hold its Neo shares for investment purposes. The company may acquire additional shares or dispose of shares depending on market conditions and Neo’s shareholder rights plan.
Wyloo has also confirmed that it does not have joint actors in relation to Neo or any of its securities.
The completion of the UJV Agreement will solidify Wyloo’s role in the rare earths sector, reinforcing its position in the global supply chain.
Final Takeaway
Wyloo’s latest moves in the rare earths market mark a significant expansion of its critical minerals portfolio. By partnering with Hastings on Yangibana and becoming the largest shareholder in Neo, Wyloo is well-positioned to play a key role in the global supply of rare earths.
With the rare earths market projected to grow rapidly, Wyloo’s investments align with global trends toward renewable energy, electric vehicles, and advanced manufacturing. As regulatory approvals progress, the Yangibana Joint Venture is expected to become a cornerstone project in Australia’s rare earths industry.
