PERTH (miningweekly.com) – ASX-listed Hastings Technology Metals has unveiled a A$110-million capital raise to advance the development of its Yangibana rare earths project, in Western Australia.

The company on Tuesday announced that it would raise an initial A$100-million through a two-tranche share placement, at a price of A$4.40 a share.

The first tranche of the placement will consist of some 15.2-million shares, raising an initial A$67-million under Hastings’ existing placement capacity, while the second tranche of 7.5-million shares, to raise a further A$33-million, will be subject to shareholder approval at a meeting scheduled for October 10.

The placement is expected to result in the issue of 22.7-million shares, representing 22.4% of Hastings’ existing shares on issue.

The offer price of A$4.40 a share presented an 18.8% discount to the company’s last closing price on September 2, and a 12.3% discount to its ten-day volume weighted average share price.

In addition to the share placement, Hastings will also undertake a share purchase plan (SPP), allowing existing shareholders to subscribe for up to A$30 000 worth of new shares in the company, also at a price of A$4.40 a share, with the aim of raising a further A$10-million.

The SPP will open on September 14 and will close on October 12.

“Hastings is delighted to announce the underwritten institutional placement, which strengthens the company’s balance sheet and places it in a strong position to finalise project financing for Yangibana as it approaches plant commissioning by 2024,” said executive chairperson Charles Lew.

“The placement demonstrates support for Yangibana as a world-class project and represents an endorsement of our development strategy. Additionally, it provides further validation of market support for Hastings’ recently announced proposed strategic investment in Neo Performance Materials and longer-term aspirations of becoming a fully integrated mine-to-magnet producer.”

An updated project economics for Yangibana estimated that the project would require a capital investment of A$658-million, with Yangibana expected to produce 15 000 t/y of mixed rare earth carbonate, containing 3 400 t/y of neodymium praseodymium.