Hastings Technology Metals is hoping to raise up to $110 million to develop its proposed Yangibana rare earths project in Western Australia’s Gascoyne region.
Hastings Technology Metals is hoping to raise up to $110 million to develop its proposed Yangibana rare earths project in Western Australia’s Gascoyne region.
The ASX-listed business launched a $100 million two-tranche capital raising this morning, seeking to raise approximately $67 million and $33 million, respectively, from institutional investors.
Shares are on offer under the Barrenjoey Markets and Canaccord Genuity-led raising at $4.40, marking an 18.8 per cent discount on Hasting’s Friday close price.
The brokers are underwriting the placement.
A further $10 million will be sought from existing Hastings shareholders in a follow-up share non-underwritten purchase plan at the same price.
The cash will go towards financing Hastings' Yangibana rare earths project in the Gascoyne, including securing additional processing equipment for a benefication plant, early work development costs and project services costs.
The company is targeting commissioning in 2024.
Hastings executive chair Charles Lew said the raising would put the company in a strong position to finalise project financing.
“The placement demonstrates support for Yangibana as a world-class project and represents an endorsement of our development strategy,” he said.
The call for capital follows an investment from Andrew Forrest’s Wyloo Metals, which last month announced it would back Hastings for $150 million via a convertible notes arrangement.
The investment was Mr Forrest’s first move into rare earths.
Proceeds from that deal are set to fund Hastings' proposed acquisition of a 22.1 per cent stake in rare earths processing and magnet producer Neo Performance Materials as means of gaining exposure to downstream processing.
“Additionally, it provides further validation of market support for Hastings’ recently announced proposed strategic investment in Neo Performance Materials and longer-term aspirations of becoming a fully integrated mine-to-magnet producer,” Mr Lew said of today’s placement.
Hastings Technology Metals shares last changed hands at $5.40.
