Hastings raises cash for rare earth project

PERTH (miningweekly.com) – ASX-listed junior Hastings Technology Metals will raise A$5-million through a share purchase plan (SPP) to fund work at its Yangibana rare earths project, in Western Australia.

Eligible shareholders would be allowed to subscribe for up to A$15 000 of ordinary shares, priced at 8.6c each, with up to 58.13-million shares on offer.

Hastings said on Friday that funds raised through the SPP would be used to continue in-fill drilling and drilling at a number of new targets at Yangibana to increase the confidence in the current resource, as well as to fund preliminary engineering design and specification work on the mine infrastructure and construction of the processing plant.

Funds would also go towards further optimisation testwork to increase the recovery and concentrate grades in the beneficiation process, and for initial procurement preparatory work to further reduce capital and operating expenditure.

“The Yangibana project has reached an important juncture and we are taking advantage of all the positive developments and milestones that have been achieved so far,” said Hastings executive chairperson Charles Lew.

“We continue to work towards achieving the objectives set out beyond the completion of the definitive feasibility study, which is expected by October this year. One of the key objectives is to reduce total capital expenditure for the Yangibana project to A$300-million and annual operating expenditure of A$120-million.”

Lew said that Hastings was also in discussions with debt providers to secure funding, and with the local Traditional Owners in the Gascoyne region to conclude a native title agreement.