Ark Gold holds two exploration licences 40km southeast of Hastings’ flagship Yangibana project. It also includes Darcy’s gold tenements, consisting of three exploration licences across 100 square kilometres near the company’s Brockman niobium and heavy rare earths project in the East Kimberley region.
Conditions precedent include Metal Bank’s shareholder approval to issue the consideration shares and Hastings’ shareholder approval for the in-specie consideration share distribution. Both approvals must be supported by a minimum of shareholders holding at least 20 per cent of the respective stock.
Notably, a tripartite mineral rights agreement between Hastings, Metal Bank and Ark Gold preserves Hastings’ rare earth rights on Ark’s tenements, aligning with Hastings’ strategic focus.
The transaction enables Hastings to double down its focus on its two prime assets, while maintaining exposure to the promising gold assets. It positions Metal Bank as a growing gold-focused force in WA’s mineral-rich landscape.
Hastings shareholders will also obtain exposure to Metal Bank’s 122,500-ounce Livingstone gold project. Livingstone comprises 395 square kilometres of granted exploration licences, 140km northwest of Meekatharra, covering the entire western arm of the Proterozoic Bryah-Padbury Basin. The basin is known for hosting several gold deposits and is believed to be endowed with more than 2 million ounces of gold.
Certainly, market punters welcomed the news of the binding agreement, sending Metal Bank shares on an upward ride this morning from 1.5 cents per share on Friday’s close to touch a peak of 2.6c. More than nine million shares swapped hands this morning, which appears to be the stock’s highest daily traded volume in more than four years.
The ground-breaking Yangibana rare earths project is now a joint venture between Hastings, which holds a 40 per cent stake, and Wyloo Metals. It is fully permitted and aiming for first production in 2026, with plans for an initial 37,000 tonnes of mixed rare earths concentrate to be produced annually.
Wyloo is owned by Tatterang, a private investment company, in turn owned by mining billionaires Andrew “Twiggy” Forrest and Nicola Forrest.
The agreement to divest its gold assets is a canny sidestep by Hastings to supercharge its push to rare earths dominance, which will also enable Metal Bank to unveil the true potential of the golden assets.
As the drill bits spin at Seven Leaders and shareholder approvals loom, both sides have much to gain. In WA’s sun-scorched goldfields, the link-up blends strategic focus with some glittering upside.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
