- Hastings Technology Metals (HAS) has launched an institutional placement to raise $57.2 million for its Yangibana Rare Earths Project in WA
- 301.1 million shares will be issued at 19 cents each, which is a 20.8 per cent discount to the last closing price of 24 cents
- The rare earths company will also undertake a second-tranche placement to be capped at $15 million
- The money will be used to advance Hastings’ Yangibana Rare Earths Project
- Hastings is also looking to upgrade the project’s mineral resource and mine life later this quarter
- Shares last traded at 24 cents on February 17
Hastings Technology Metals (HAS) has launched an institutional placement to raise $57.2 million.
This morning, the rare earths company entered a trading halt regarding the capital raise. Details were released less than an hour later.
A total of 301.1 million shares will be issued at 19 cents each, which represents a 20.8 per cent discount to the last closing price and a 9.9 per cent discount to the five-day volume-weighted average price.
Hastings will also undertake a second-tranche placement to allow sophisticated and institutional investors participate if they were unable to in this initial placement.
Tranche two will be capped at $15 million and will be undertaken at the same offer price as the placement. This second tranche isn’t underwritten and will only go ahead if Hastings’ shareholders approve it.
Hastings will use the money from both tranches to advance its Yangibana Rare Earths Project in the Gascoyne region of Western Australia.
“Hastings is making significant progress advancing our world-class Yangibana rare earths project at a time when global demand for neodymium and praseodymium is rising rapidly,” Executive Chairman Charles Lew said.
Specifically, the money will support long-lead item equipment, front-end engineering plant design, mine site works and working capital.
The company is working towards upgrading the project’s mineral resource and mine life later this quarter.
The placement is expected to settle on February 26 and the new shares will be allocated and begin normal trading on March 1.
Hastings will remain in the trading halt until Monday, February 22.
Shares last traded at 24 cents on February 17.