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Forrest-backed Hastings Technology Metals rides the momentum

Hastings Technology Metals

Hastings Technology Metals is capitalising on the momentum created from Andrew Forrest’s recent $150 million investment, receiving firm commitments for a $110 million equity raise.

Tranche one of the placement is set to raise $67 million through the issue of 15.2 million new shares while tranche two, which is subject to shareholder approval, is set to raise $43 million through the issue of 9.8 million new shares.

Each new share will be priced at $4.40, which represents an 18.8 per cent discount to Hastings’ closing share price of $5.42 per share on Friday September 2.

Hastings will also look to raise a further $10 million in a non-underwritten share purchase plan, which is scheduled to open on September 14 and is also priced at $4.40 per share.

“Despite soft market sentiments, the strong demand shown from both Australian and international institutional investors in this placement is testament to the world-class nature of the Yangibana project and the significant steps already undertaken by Hastings to progress mine construction and ongoing development,” Hastings executive chair Charles Lew said.

“The placement has also been well supported by Hastings’ existing shareholders and will further introduce a range of new investors to the register.

“The introduction of these high-quality institutions, together with the support shown by current long-term shareholders, has ensured that Hastings is well capitalised to maintain development momentum at Yangibana, which remains on track for commissioning in mid-2024.”

In late August, Hastings received a $150 million cornerstone investment from Andrew Forrest’s private company Wyloo Metals.

Hastings said it would use the Wyloo proceeds, paid in secured notes, to acquire a 22.1 per cent equity interest in TSX-listed Neo Performance Materials, a leading global rare earth processing and advanced permanent magnets producer.

Located in the Gascoyne region of Western Australia, the Yangibana project is considered one of the richest known localities containing neodymium and praseodymium (NdPr), with an NdPr:TREO (total rare earth oxides) of up to 52 per cent.

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