Hastings Technology Metals plans to raise $15.5 million to fund development of the Yangibana rare earths project in Western Australia.
The Sydney-based company said it received “firm commitments” for the capital raising, which involves it issuing 77.5 million shares for 20 cents each.
According to Hastings, the funds will be used for infrastructure works prior to processing plant construction, including development of the Yangibana mine site access road, acquisition and commissioning of an accommodation camp and preliminary engineering design work on the production plant.
Earlier this month, Hastings signed an off-take memorandum of understanding (MoU) with Baotou Sky Rock to sell 2500 tonnes of mixed rare earth carbonate (MREC) per annum from the Yangibana operation.
Executive chairman Charles Lew commented: “Further offtake agreements are expected to follow, which will reinforce the company’s financing plan to fund the development of the mine and the construction of the processing plant.”
Hastings estimates that annual output of MREC from Yangibana will be 15,000 tonnes, with first production expected in the second half of 2019.
Yangibana is 270km east-northeast of Carnarvon in WA’s Gascoyne region.