Chinese rare earths heavyweight JL Mag is set to emerge with a near 10 per cent stake of Forrest family-backed Hastings Metals Technology, as well as a seat on the board, in return for a $7 million investment.

Under the deal, disclosed on Tuesday, Hastings will issue 19.6 million new shares at 36¢ apiece to a JL Mag subsidiary based in Hong Kong. It comes as Hastings looks for a way forward with the Yangibana rare earth project in Western Australia.