Hastings Technology Metals Ltd: Launches Rights Issue
Sydney, Australia - Hastings Technology Metals Ltd. (Hastings or Company) (ASX:HAS) is pleased to advise that it has launched a non-renounceable rights issue on the basis of 1 new ordinary share for every 8 ordinary shares held (Rights Issue) at a price of A$0.17 cents per ordinary share to raise approximately A$16.5m.- 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:
http://abnnewswire.net/lnk/908G9BVS
About Hastings Technology Metals Ltd:
Hastings Technology Metals Ltd. (ASX:HAS) is a leading Australian rare earths company, with two rare earths projects hosting JORC-compliant resources in Western Australia.
- The Yangibana Project hosts Probable Reserves totaling 5.15 million tonnes at 1.12% TREO including 0.45% Nd2O3+Pr6O11 within JORC Resources totalling 21.0 million tonnes at 1.17% TREO (comprising Measured Resources of 3.9 million tonnes at 1.19% TREO, Indicated Resources of 8.6 million tonnes at 1.25% TREO and Inferred Resources of 8.4 million tonnes at 1.09% TREO), including 0.40% Nd2O3+Pr6O11.
- The Brockman deposit contains JORC Indicated and Inferred Resources totalling 41.4 million tonnes (comprising 32.3mt Indicated Resources and 9.1mt Inferred Resources) at 0.21% TREO, including 0.18% HREO, plus 0.36% Nb2O5 and 0.90% ZrO2.
- Rare earths are critical to a wide variety of current and new technologies, including smart phones, electric vehicles, wind turbines and energy efficient light bulbs.
- The Company aims to capitalise on the strong demand for rare earths permanent magnets created by expanding new technologies.
Source:
Hastings Technology Metals Ltd.
Contact:
Mr Charles Lew Executive Chairman T: +65-6220-9220 Mr Andrew Reid Chief Operating Officer T: +61-8-6117-6118