Source : THE AGE NEWS
By James Pearson
Rare earths player Astron Corporation is set to bring its global operations under a fully Australian banner, unveiling plans to shift the company’s corporate headquarters and share listing from Hong Kong to Australia.
The redomicile move will trigger the formation of a new listed Australian entity, Aus NewCo, to take the reins as Astron’s new head company, replacing its current Hong Kong-based parent.
Astron Corporation has announced plans to redomicile its corporate headquarters from Hong Kong to Australia, in a move expected to bring closer alignment with its local investor base as it powers ahead with its Donald rare earths and mineral sands project in Victoria.
As part of the move, Australian shareholders will be asked to swap their CHESS depositary interests (CDIs) for shares in the new Australian entity on a two-for-one basis, while the Hong Kong investors’ holdings will be relisted locally and remain unchanged.
Astron’s shares have for years traded on the ASX as CDIs, limiting shareholders’ voting rights and complicating their ownership. The new structure will give shareholders direct voting power and ordinary shares, bringing the company in line with its typical Australian-listed peers.
A first hearing with Hong Kong’s Court of First Instance has been locked in for next week, with a crucial shareholder vote set for July 30. If approved, Astron’s CDIs will cease trading on August 20, and shares in Aus NewCo will begin trading a day later.
The company expects the Australian Taxation Office to issue a class ruling confirming the redomicile qualifies for capital gains rollover relief to ensure the swap won’t trigger a tax bill for investors.
Astron says it has always seen itself as an Australian miner and the restructure will cement that identity. The move paves the way for smoother shareholder engagement, stronger governance and closer alignment with its local investor base as it powers ahead with its Donald rare earths and mineral sands project in Victoria.
Notably, the change is expected to simplify Astron’s compliance burdens. Currently, even basic transactions such as buying land in Australia require Foreign Investment Review Board approval – a hurdle the company says will be swept away when it is becomes a legal Australian entity.
The move is also tipped to make the company more attractive to retail and institutional investors and help attract and retain local talent.
Astron is homing in on a final investment decision for its world-class Donald project. The company says recent months have delivered a flurry of progress across permitting, drilling, plant design, financing and offtake deals.
The ramped-up activity is expected to pave the way for it to become a long-term supplier of critical rare earths, such as neodymium, praseodymium, dysprosium and terbium, which are essential in electric vehicles, wind turbines and high-tech defence systems.
The project’s phase one operation aims to churn through 7.5 million tonnes of ore annually to produce about 7000t of rare earth concentrate and 250,000t of heavy mineral concentrate over a massive 41-year mine life. A second phase could push mine life past 58 years and ramp output significantly.
Astron expects an imminent sign-off of the work plan approval from Victoria’s environmental regulator after a short delay caused by a late-stage requirement for authority to manage trace uranium content in the ore.
Although uranium levels fall well below nuclear thresholds, a workaround involving monitoring protocols is being negotiated.
A 132-hole pre-production drilling campaign totalling 3411 metres was wrapped up in the past couple of months to zero in on the first two years of mining. Early visuals revealed zones up to 40 per cent heavy mineral content. Assays and an updated geological model are expected in the third quarter.
Plant engineering is also in full swing. A fresh study with Mineral Technologies has flagged lower construction costs and faster build times. Meanwhile, engineering, procurement, construction and mining contracts are being finalised. Two ports and multiple logistics providers are in the mix for transporting the high-value concentrate.
Astron has already locked in offtake agreements for all the rare earth concentrate with United States partner Energy Fuels, the owner of the only conventional operating uranium mine in the US. The material will be processed at Energy Fuels’ Mesa facility in Utah.
As part of the deal, Energy Fuels will receive up to a 49 per cent stake in the project in exchange for $183 million of staged funding towards the phase-one development and US$17.5M (A$27M) worth of Energy Fuels shares.
Astron says its shareholding in Energy Fuels will give it exposure to uranium, which is expected to be in strong demand globally in the decades ahead.
In the meantime, Chinese mineral sands specialist JinDi has penned a non-binding deal to take more than 70 per cent of Donald’s heavy mineral concentrate output. There are plans to ratify a full-fledged offtake that gets a nod from project financiers.
In a strong tick of confidence in the project’s risk profile, Astron says it has recently received plenty of interest from multiple commercial lenders following a glowing independent technical expert report.
Astron’s 35-year journey through mineral sands processing and rare earths marketing has taken it from China to Australia and back again. But now, the compass is fixed due south – and the Donald project’s long-term success is likely to hinge on having both boots firmly planted on Australian soil.
With an ASX listing, governance overhaul and simplified structure all in sight, Astron is banking on its homegrown roots to unlock fresh capital and accelerate development at one of Australia’s biggest rare earths deposits.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
