Hastings shakes the tin to fund further work at Yangibana
PERTH (miningweekly.com) – Rare earths hopeful Hastings Technology Metals would raise A$9.6-million through a share placement to a number of cornerstone investors.
The ASX-listed junior said on Monday that it would issue 96-million shares, at 10c each, to raise the funds. The issue price represented a 28% premium to the company’s last closing price and a 42% premium to its 30-day volume weighted average price.
The shares would be issued under Hastings's current placement capacity, and would not require shareholder approval.
“The success of this fundraising in a challenging capital market environment is a measure of the confidence investors have in the Yangibana rare earths project, despite the downturn in the resource sector,” said Hastings executive chairperson Charles Lew.
A recently completed prefeasibility study into the Yangibana project, in Western Australia, forecast that the mine could produce some one-million tonnes a year of ore, starting in 2019, with a mine life of seven years.
The project was expected to require a capital investment of between A$390-million and A$420-million.
Hastings said that the company would raise additional funds through a secondary placement, subject to shareholder approval.
The secondary placement would not be priced at less than 10c a share.
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