Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) has received commitments to raise A$110 million through a two-tranche placement.
In addition to the Placement, the company is also undertaking a non-underwritten Share Purchase Plan (SPP) to raise up to A$10 million.
“Despite soft market sentiments, the strong demand shown from both Australian and international institutional investors in this Placement is testament to the world-class nature of the Yangibana project and the significant steps already undertaken by Hastings to progress mine construction and ongoing development,” Executive Chairman, Charles Lew, said.
“The Placement has also been well supported by Hastings’ existing shareholders and will further introduce a range of new investors to the register.
“The introduction of these high-quality institutions, together with the support shown by current long term shareholders, has ensured that Hastings is well-capitalised to maintain development momentum at Yangibana, which remains on track for commissioning in mid-2024.
“We are also pleased to offer our existing eligible shareholders the opportunity to participate in this equity raising via the SPP, which will open on Wednesday, 14 September 2022. We thank shareholders for their long-standing support and look forward to seeing Yangibana successfully brought into production.”
Proceeds from the Placement and SPP will be used to advance the development of the world-class Yangibana project, including to fund:
1. Process plant capex at Yangibana and Onslow
2. Early work development costs
3. Project services costs
4. Working capital and offer costs
Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited are acting as Joint Lead Managers and Underwriters to the A$100 million Institutional Placement (increased from A$90 million announced previously. King & Wood Mallesons are acting as Australian legal adviser.
For further information please visit: https://hastingstechmetals.com/
