Receives Firm Commitments for $13.7 Million in Capital Raising
Sydney, Aug 6, 2018 AEST (ABN Newswire) - Hastings Technology Metals Ltd (Hastings or Company) (
ASX:HAS) is pleased to advise that it has received firm commitments for a capital raising of $13.7 million before costs.
The Company will issue approximately 65 million new ordinary Shares under LR7.1 at a price of 21 cents per share. It is expected that the receipt of funds and issue of new ordinary shares will be completed by 15 August 2018.
Together with funds on hand of $20.7 million at the end of June 2018 (as reported on 25 July 2018) the Company has approximately $34 million in cash which will allow it to commit to the order for the long lead time equipment for the processing plant, being the Rotary Kiln and Sulphuric Acid Plant.
Charles Lew, Executive Chairman, commented "despite the difficult capital market conditions, this placement had the support of many of its existing shareholders and significant participation from new institutional fund managers. The additional cash resources will enable us to continue with the momentum for the development of the Yangibana rare earths project. With the recent upgrade in the Yangibana probable reserves to 7.74 million tonnes(see Note 1 below) and the exclusive project finance mandate signed with KfW IPEXBank for project financing(see Note 2 below), the Company is confident of its progress towards building a mine to produce high grade NdPr in Western Australia.
We welcome these new shareholders to the Company and thank our existing shareholders for their ongoing support."
Notes:
1 See ASX Announcement dated 31 July 2018
2 See ASX Announcement dated 27 July 2018
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is advancing its Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production. The proposed beneficiation and hydro metallurgy processing plant will treat rare earths deposits, predominantly monazite, hosting high neodymium and praseodymium contents to produce a mixed rare earths carbonate that will be further refined into individual rare earth oxides at processing plants overseas.
Neodymium and praseodymium are vital components in the manufacture of permanent magnets which is used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, medical applications and others. Hastings aims to become the next significant producer of neodymium and praseodymium outside of China.
Hastings holds 100% interest in the most significant deposits within the overall project, and 70% interest in additional deposits that will be developed at a later date, all held under Mining Leases. Numerous prospects have been identified warranting detailed exploration to further extend the life of the project.
Brockman Project
The Brockman deposit, near Halls Creek in Western Australia, contains JORC Indicated and Inferred Mineral Resources, estimated using the guidelines of JORC Code (2012 Edition).
The Company is also progressing a Mining Lease application over the Brockman Rare Earths and Rare Metals Project.
Hastings aims to capitalise on the strong demand for critical rare earths created by the expanding demand for new technology products.
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