Hastings Technology Metals Ltd (Hastings or Company) (
- Rights issue to raise up to approximately A$16,500,000, with A$3,500,000 underwritten.
- Funds raised from rights issue will be used for ongoing construction of the 380 room accommodation village, early infrastructure earth works on the mine site and progress payments for long lead time equipment currently on order.
The 1 (one) for 8 (eight) Rights Issue is on a non-renounceable basis. Eligible shareholders are being offered the opportunity to subscribe for 1 New Share for every 8 existing Hastings shares held as at the Record Date (5:00pm Perth time on 12 April 2019), to raise up to (approximately) A$16.5 million. For every 2 (two) rights issue shares subscribed the holder will be entitled to 1 (one) free attaching Option on the basis of 1 Option for every 2 rights issue shares. The Option Exercise Price is A$0.25 cents and has an Expiry date of 12 April 2022. The call option value using the Black Scholes option pricing model is A$0.062 cents assuming a 64% volatility (based on last 12 months of trading) and a RBA cash rate of 1.5%. The Company intends to apply to ASX for the listing of the Options and has today lodged a prospectus with ASIC and ASX in relation to the Options. Eligible Shareholders who take up their entitlement in full may also apply to subscribe for additional shares in excess of their entitlement. Assuming full take up of the Rights Issue, the Company will issue 97,259,460 new ordinary shares.
The Rights Issue will be partially underwritten (to A$3.5 million) by Hastings' Executive Chairman, Mr Charles Lew, Mr Soon Hoe Chuan and Mr Goon Heng Wah.
A transaction specific prospectus will be sent to eligible shareholders on or before 17 April 2019.
The funds raised as part of this capital raising exercise will be used to continue construction of the 380 room accommodation village, early infrastructure earth works on the mine site and progress payments for long lead time equipment currently on order, namely the rotary kiln and off-gas scrubber with the remainder used as working capital.
To view the Prospectus, please visit:
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) 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.
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.
ContactMr Charles Lew
Mr Andrew Reid
Chief Operating Officer