Hastings’ $2.3M Metal Bank Share Deal Signals Strategic Gold Exit

Strategic Gold Asset Divestment

Hastings Technology Metals Ltd (ASX – HAS) has taken a decisive step to streamline its portfolio by signing a binding agreement to sell its gold assets to Metal Bank Limited (ASX – MBK). The deal, valued at approximately $2.6 million in combined shares and cash, represents a clear strategic pivot for Hastings, allowing it to concentrate on its core rare earth and niobium projects.

The assets under sale include a 75% stake in the Whiteheads Gold Project near Kalgoorlie, the Ark gold tenements southeast of the Yangibana rare earths project, and the Darcys gold tenements adjacent to Hastings’ Brockman project in East Kimberley. These holdings cover a substantial land area of around 480 square kilometres across Western Australia.

Transaction Details and Conditions

Metal Bank will issue over 160 million ordinary shares to Hastings, valued at $2.3 million based on a recent volume-weighted average price, alongside $300,000 in cash held by Hastings’ subsidiary Great Western Gold Pty Ltd. Completion hinges on multiple conditions, including shareholder approvals from both companies and regulatory clearances. Hastings plans to distribute the Metal Bank shares to its shareholders via an in-specie distribution, subject to approval at its mid-November Annual General Meeting.

Notably, Metal Bank has secured ASX confirmation that certain listing rules do not apply, smoothing the path for the transaction. The deal also includes a tripartite mineral rights agreement ensuring Hastings retains rare earth mineral rights over the Ark Project, preserving its strategic interests in critical minerals.

Ongoing Exploration and Development Plans

Despite the divestment, Hastings remains actively engaged in advancing the Whiteheads Project, with confirmatory drilling underway at the Seven Leaders deposit. This program aims to establish a maiden JORC Mineral Resource Estimate, a key milestone that will underpin Metal Bank’s development plans post-acquisition. Hastings is managing this initial drilling phase, which includes reverse circulation and diamond core drilling to support future open pit design.

Metal Bank has outlined an ambitious 12-month work program post-completion, targeting resource definition, mining lease applications, and securing toll treatment agreements across the acquired projects. Leadership changes at Metal Bank are also planned, with Hastings’ Executive Chairman Charles Lew joining as a Non-Executive Director, signaling close collaboration between the two companies.

A Clear Focus on Rare Earths and Niobium

For Hastings, this transaction marks a transformational moment. Executive Chairman Charles Lew emphasized the company’s renewed focus on its flagship Yangibana Rare Earths and Niobium Project, which boasts one of the world’s richest deposits of neodymium-praseodymium (NdPr), critical for electric vehicles and renewable energy technologies. By divesting gold assets, Hastings aims to sharpen its development efforts on these high-value critical minerals, positioning itself strategically in the growing global supply chain for clean energy materials.

As the rare earths market tightens and demand surges, Hastings’ move could enhance shareholder value by concentrating resources and management attention on its core strengths. Meanwhile, Metal Bank gains a significant foothold in gold exploration and development, potentially creating a more focused gold company with a clear growth trajectory.