Hastings Technology Metals is planning to raise $22 million for the development of its Yangibana rare earths project in Western Australia.
The company will aim to boost funding for the project through the launch of a partially underwritten pro-rata renounceable rights issue.
Hastings shareholders will be invited to subscribe for nine new fully paid ordinary shares for every 20 existing shares held from Wednesday April 3 2024. A fully subscribed rights issue will result in approximately 61.5 million new shares.
Hastings executive chairman Charles Lew encouraged shareholders to participate, emphasising key board members intend to take part.
“We are pleased to be able to offer our existing shareholders the opportunity to participate in this current funding round which will facilitate the continuation of our project development workstreams for the Yangibana project and act as a bridge to the planned completion of the project financing for the project,” Lew said.
“All of the company’s board and senior management team intend to take up their entitlement in the rights issue, underlining our conviction in the Yangibana project’s potential to become a world-class rare earth operation and our long-term vision to become a fully integrated mine-to-magnet producer.
“Shareholders are encouraged to take up their entitlements in part or in full.”
The finds will be used for ongoing development of Yangibana including for working capital, long lead equipment, advance engineering, professional services fees, and project finance due diligence.
Since the discovery of Yangibana in 2014, Hastings has steadily progressed the project from exploration into construction, with first production set to commence in 2025.
The prospective mine is tipped to boast a 17 year life and is expected to produce 3400 tonnes per year of neodymium and praseodymium.
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