The $150m investment comes via secured exchangeable notes
Clayton Utz has helped metals and mining business Wyloo Metals to successfully invest in Australian rare earths developer Hastings Technology Metals Limited.
Wyloo Metals CEO Luca Giacovazzi confirmed that the investment fits with the company’s long-term strategy to invest in critical minerals that support renewable energy generation and electrification.
“We’re pleased to be investing in the stable and secure supply of minerals and permanent magnets that are inputs in essential products like electric vehicles and wind turbines,” Giacovazzi said. “Wyloo is delighted to be partnering with Hastings as a cornerstone investor and we look forward to joining the board and working alongside the company as it delivers upon its strategy.”
According to Wyloo, the $150m investment comes via secured exchangeable notes, the proceeds of which will be used by Hastings to acquire a 22.1% stake in Neo Performance Materials Inc., a rare-earths processing and advanced permanent magnets producer, from global investment manager Oaktree Capital Management.
The notes will have a term of three years and can be swapped at any time after 60 days for Hastings shares at $5.50 each. Moreover, Wyloo will also have the right to appoint a nominee director to the Hastings board and retain that nominee while its equity interest in Hastings remains at 12.5% or more.
Corporate partner Mark Paganin and special counsel Stephen Neale led the Clayton Utz team in assisting Wyloo with the transaction. They were supported by senior associate William Davies.
Other team members who helped finalise the deal were banking and services partner Rohan Mishra and senior associate Jackie Leggett, as well as tax partner Peter Feros and special counsel Seema Sandhu.