Proposed Revised Terms of Rights Issue
Sydney, April 5, 2019 AEST (ABN Newswire) - Hastings Technology Metals Ltd (Hastings or Company) (
ASX:HAS) notes that following the announcement of the placement and rights issue on 3 April 2019, its Executive Chairman, Mr Charles Lew, has been contacted by shareholders who did not participate in the recent share placement seeking that those shareholders who take up their entitlement in the rights issue be offered the same terms as for the placement which included the provision for a free attaching option, exercisable at A$0.25 per ordinary share and with an expiry date of 12 April 2022, for every 2 shares subscribed for.
Following this feedback, the Board has determined to withdraw the current rights issue. It is the Company's present intention to launch a revised rights issue with improved terms as soon as is practicable.
- Shareholders have requested that, as with the recently announced placement, the rights issue should offer free attaching options
- Board has determined to withdraw current rights issue and presently intends to launch rights issue on similar terms, including 1 free attaching option for every 2 rights issue shares subscribed for
The revised rights issue is presently intended to be made on the same terms as the withdrawn rights issue, save for the added entitlement of eligible shareholders to also be granted a free attaching option, exercisable at A$0.25 per ordinary share and with an expiry date of 12 April 2022, for every 2 New Shares subscribed for.
Given the revised rights issue would incorporate an offer of options, it is intended that the rights issue would be offered under a transaction specific prospectus, which would be lodged with ASIC and ASX.
Full terms of the intended revised rights issue will be announced to ASX as soon as the Company has resolved to proceed.
The Company notes shareholders have today been sent information regarding terms of the initial rights issue. As this has now been withdrawn, this information should be DISREGARDED once received.
Charles Lew said, "We are pleased to have the opportunity to offer shareholders residing in Australia and New Zealand who did not participate in the placement the ability to participate in a rights issue on effectively the same terms as the recent share placement and hope that the rights issue with these improved terms will be well subscribed as was the case with the placement."
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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