The two parties have signed a memorandum of understanding outlining their intent to enter into a binding commercial offtake agreement within the next six months for the sale and purchase of Yangibana's MREC for Schaeffler in Germany.
The framework for the commercial offtake agreement is set out in the MoU, with the final terms and conditions to be formalised in a contract.
Hastings and Schaeffler plan to negotiate in good faith to reach agreement for a 10-year commercial offtake contract to supply MREC, containing neodymium and praseodymium.
In addition to the offtakes, Schaeffler is supporting Hastings in its eligibility for the German government's untied loan guarantee scheme (UFK) in its project financing for the construction of the Yangibana mine and processing plant.
Cadence owns 30% of the Yangibana North, Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North rare earth deposit, which form part of the Yangibana project.