PERTH (miningweekly.com) – Rare earths developer Hastings Technology Metals will raise A$14.6-million in a share placement to advance its Yangibana project, in Western Australia.

The company on Wednesday said it would issue some 117-million new shares to institutional, sophisticated and professional investors at a price of 12.5c a share, which represented a 21.9% discount to Hastings’ last trading price.

The new shares will be issued under the company’s existing placement capacity, and will not require shareholder approval.

Hastings will also launch a share purchase plan (SPP) to raise an additional A$3-million, allowing eligible shareholders to participate in the capital raise.

Furthermore, Hastings said on Wednesday that, given the significant level of demand and to accommodate as many new investors as possible, the cornerstone investors which anchor the placement prior to the launch have been significantly scaled back, with Hastings electing to increase the size of the placement by some A$3.1-million, to accommodate these investors, of which A$2.6-million will be conditional upon shareholder approval at an annual general meeting.

The share placement, the SPP and the conditional placement will raise a combined A$20.7-million.

The company told shareholders that the funds raised would be used to procure equipment, further engineering design, to fund grade and resource drilling, as well as mine site works at the Yangibana project.

Hastings earlier this year reduced the capital cost expectations at Yangibana by some A$68-million by pursuing a decoupled processing strategy and a relocation of the hydrometallurgical plant to the Pilbara.

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.