- Hastings Technology Metals (HAS) has received commitments to raise $100.7 million via a two-phase placement
- Under phase one, roughly 301.1 million new fully-paid shares will be issued to institutional, sophisticated and professional investors to raise $57.2 million
- Shares were priced at 19 cents, a 9.9 per cent discount to the five-day volume-weighted average price
- Phase two, which is subject to shareholder approval, has receive firm commitments for a further $43.5 million
- This phase was originally capped at $15 million, but it was expanded due to strong investor demand
- Hastings will use the funds from both phases to advance the development of its Yangibana Rare Earths Project in Western Australia
- Specifically, the money will go towards obtaining equipment, mine site works, front-end engineering plant design and working capital
- Shares in Hastings are down 8.33 per cent and are trading at 22 cents
Hastings Technology Metals (HAS) has received commitments to raise $100.7 million via a two-phase placement.
Phase one
Under phase one, roughly 301.1 million new fully-paid ordinary shares will be issued to institutional, sophisticated and professional investors to raise $57.2 million.
Shares were priced at 19 cents, a 9.9 per cent discount to the five-day volume-weighted average price.
The placement was launched on February 18 after the company entered a trading halt.
Phase two
Phase two, which is subject to shareholder approval, saw Hastings receive firm commitments for $43.5 million.
This phase was originally capped at $15 million but it was expanded due to strong investor demand.
Hastings will aim to receive shareholder approval at its extraordinary general meeting in late March.
Once approval has been received, a further 228.9 million new shares will be issued at 19 cents.
Hastings will use the funds from both phases to advance the development of its Yangibana Rare Earths Project in Western Australia.
Specifically, the money will go towards obtaining equipment, mine site works, front-end engineering plant design and working capital.
“Hastings has been overwhelmed with the strong support from Australian and international investors in our Yangibana rare earths project. Their support in the placement underscores the market’s belief that Yangibana will become Australia’s next rare earth producer,” Executive Chairman Charles Lew said.
“The Hastings team are focused on the remaining key workstreams, including the project’s mineral resource upgrades to grow project life and improve financial metrics further, finalising additional off takes and concluding debt financing,” he added.
Shares in Hastings are down 8.33 per cent and are trading at 22 cents at 12:30 pm AEDT.