PERTH (miningweekly.com) – Rare earths developer Hastings Technology Metals will raise nearly A$20-million to assist in the development of its Yangibana rare earths project, in Western Australia.
The company on Wednesday reported that it had raised A$12-million through a share placement priced at 17c a share, with the shares to be issued under its existing placement capacity.
The offer price represented a 12.8% discount to Hastings’ five-day volume weighted average share price, and a 15% discount to its last closing price.
Along with every two placement shares subscribed for, the company will issue one free attaching option, which can be exercised at a price of 25c each by April 2022.
“The success of this placement shows the growing attention of investors in permanent magnets and the role they play in the e-mobility revolution as well as in the clean and renewable energy space,” said Hastings executive chairperson Charles Lew.
Hastings told shareholders that the company would also undertake a one-for-eight rights issue, with the aim of raising up to A$16.5-million. Hastings is expected to issue more than 97.2-million shares under the non-renounceable rights issue.
Lew said that the funds raised would enable the company to continue with the pace of the development of the Yangibana project, with the aim of starting production in the first half of 2021.
The A$427-million, one-million-tonne-a-year operation is expected to produce some 15 000 t/y of mixed rare earth carbonates, and around 8 850 t/y of total rare earth oxides over a mine life of around ten years.