Hastings Technology Metals Ltd. signed a memorandum of understanding to sell 2,500 tonnes of mixed rare earth carbonate per year to Baotou Sky Rock Rare Earth New Material Co. Ltd.
The material will come from the company's Yangibana rare earths project in Western Australia, according to an Aug. 1 release.
The companies intend to complete a commercial contract for the off-take within 12 months.
Hastings Executive Chairman Charles Lew said, "Further offtake agreements are expected to follow," which will secure funding to develop the mine and processing plant.
The company expects to produce 15,000 tonnes of mixed rare earth carbonate per year, with production scheduled to start in the second half of 2019.
Hastings recently updated the JORC-compliant resource estimate for the Yangibana project, with a 37% increase in contained total rare earths oxide to 216,000 tonnes.