Australia’s next rare earths producer Hastings Technology Metals Limited (ASX: HAS) today announced that it has received commitments to raise $100.7 million through a two-tranche placement to institutional, sophisticated and professional investors. The net proceeds of the Placement will be used by Hastings to advance the development of its world-class Yangibana rare earths project in the Gascoyne region of Western Australia.
Hastings has received commitments to raise $100.7 million (before costs) through a two-tranche placement priced at $0.19 per share.
Placement funds will be used to advance development of the world-class Yangibana Rare Earths Project.
Tranche One of the placement raised $57.2 million and was fully underwritten by Canaccord Genuity and supported by institutional investors.
Tranche Two of the placement, which is subject to Hastings shareholder approval, is to raise $43.5 million and was well supported by existing sophisticated shareholders and a global investment manager.
Upon settlement of both tranches of the placement, Hastings will have a cash balance of $120 million (before costs).
Strong institutional demand reinforces confidence that Yangibana will become Australia’s next rare earths producer.
Canaccord Genuity acted as Underwriter and Sole Lead Manager to the Placement.
Upon settlement of both tranches of the Placement, the Company will have a cash balance of approximately $120 million (before costs). The Company also has 127.6 million listed options on issue (ASX: HASO), which have an expiry date of 12 April 2022. If all HASO are exercised, the Company’s cash balance will be supplemented by a further $31.6 million.
As previously announced to the ASX, the equity component of the Yangibana Project’s capital cost is $124 million.
Hastings Technology Metals’ Executive Chairman, Charles Lew, said:
“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.
“Yangibana is a world-class rare earths project with an exceptionally high NdPr:TREO ratio and is slated to start production at a time when global demand for neodymium (Nd) and praseodymium (Pr) is growing rapidly on the back of unprecedented demand for electric vehicles.”
“Securing this quantum of equity capital at this point allows Hastings to advance the Yangibana Project towards first production with high confidence.”
“We welcome new investors to the Hastings register and look forward to seeing Yangibana brought into production. 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 offtakes and concluding debt financing.”