April 20 (Reuters) - Australia's Hastings Technology Metals HAS.AX said on Tuesday that it has signed a binding offtake contract for the supply of rare earth carbonate from its Yangibana project in Western Australia, sending its shares soaring 10%.
Under the contract, Hastings will supply 70,000 tonnes of mixed rare earth carbonate to German raw materials trading business thyssenkrupp Materials Trading GmbH over ten years.
Thyssenkrupp (DE:TKAG) will have the exclusive rights to market and distribute Hastings' rare earths product from Yangibana globally, the Perth-headquartered company added.
The contract further strengthens the economic viability of Yangibana and enables the company to progress on the debt financing with the objective of securing credit approvals in the coming months, Executive Chairman Charles Lew said in a statement.
Hastings is aiming to begin early earth works on site in Yangibana in the next few months and intends to commence production by late 2023, seeking to benefit from soaring prices of the critical minerals used in a range of products such as electric vehicles and combat aircrafts.