Hastings sets cap for A$57m raise
PERTH (miningweekly.com) – ASX-listed Hastings Technology Metals has launched a A$57.2-million capital raise to advance its Yangibana rare earths project, in Western Australia.
The company on Thursday announced that it would place some 301.1-million shares at a price of 19c each, representing a 20.8% discount to Hastings’ last closing price and a 9.9% discount to its five-day volume weighted average share price.
The shares will be placed under the company’s existing placement capacity, and do not require shareholder approval.
Hastings on Thursday said that it also reserved the right to undertake a second tranche placement to accommodate sophisticated and institutional investors that were unable to participate in the placement.
The possible second tranche placement will be capped at A$15-million, and will be subject to shareholder approval.
Funds raised will be used to advance the Yangibana rare earths project, including the procurement of long-lead items, front-end engineering plant design, mine site works and for working capital.
“Hastings is making significant progress advancing our world-class Yangibana rare earths project at a time when global demand for neodymium and praseodymium is rising rapidly,” said executive chairperson Charles Lew.
“The underwriting of this placement by Canaccord Genuity demonstrates the high level of confidence shown by the capital markets in our Yangibana project. We welcome the opportunity to introduce new investors, both internationally and domestically, to our share register.”
The one-million-tonne-a-year Yangibana operation is expected to produce some 15 000 t/y of mixed rare earths carbonate, and about 8 850 t/y of total rare earth oxides, with Hastings previously estimating a capital spend of A$517-million to bring the project online.
Lew said on Thursday that Hastings had delivered substantial exploration success at Yangibana in 2020, which the company expected to convert into an upgrade to the mineral resource and mine life later this quarter.
“Our strategy to decouple the beneficiation and hydrometallurgical plants has resulted in significant capital savings and comes with a number of other benefits for the project’s long-term development strategy,” he added.
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