PERTH (miningweekly.com) – Junior developer Hastings Rare Metals has raised A$6.5-million through a share placement to fund a prefeasibility study (PFS) on its Yangibana rare earths project, in Western Australia.
Hastings told shareholders on Monday that it would place about 93.5-million new fully paid ordinary shares, at a price of 7c each, to institutional and sophisticated investors.
“We are delighted with the significant support from existing and new shareholders given the quality of our resource base and underlying economic viability of the Yangibana project,” said executive chairperson Charles Lew.
“With a strong cash balance, we are confident of progressing Yangibana through to its next phase of mine development and also strengthening our strategic position in the rare earths market.
A scoping study on Yangibana had previously estimated that the project could deliver about 2 700 t/y of neodymium oxide, 750 t/y of praseodymium, 40 t/y of dysprosium oxide and 70 t/y of europium oxide.
The project would require a capital investment of about A$390-million, with payback expected within less than two years. The project was also estimated to have a pretax net present value of between A$900-million and A$1.2-billion, and an internal rate of return of 62.5%.
The PFS would now incorporate a mining lease application, mine design and scheduling, processing plant design and costing, regulatory approvals, environmental studies and indigenous culture and heritage agreements.
Meanwhile, in addition to the capital raise, Hastings was also proposing a share purchase plan (SPP), under which existing shareholders would be able to subscribe for new shares, also at an issue price of 7c a share.
The SPP was expected to raise a further A$2-million.