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Hastings Technology Metals raising $12 million for rare earths project

Published: 13:22 02 Feb 2018 AEDT

coins in a jar
Estimated net present value of $466 million

Hastings Technology Metals Ltd (ASX:HAS) is raising $12 million from a non-renounceable rights issue of one new share for 17 shares held, at a price of $0.31 each.

Interestingly, Hastings has restructure the $12 million capital raising revealed last month from a share purchase plan to a rights issue following significant interest from its shareholders.

This gives shareholders the opportunity to take up shares proportional to their existing holding.

Projected payback period of 2.3 years

2018 is expected to be a pivotal year for Hastings as it work towards raising the necessary funding to build the processing plant at the Yangibana Rare Earths project in Western Australia.

Hastings has already achieved many milestones on the road to establishing a world-class rare earth production plant, culminating in the publication of the definitive feasibility study in November 2017.

Significantly, Yangibana is projected to have an initial operating life of 8 years with a net present value (NPV) of $466 million and a payback period of 2.3 years.

Hastings has estimated a probable reserve of 5.16 million tonnes at 1.12% TREO (total rare earth oxides).

Robust demand for rare earths underpinned by electric vehicles

The strengthening in neodymium and praseodymium prices (+42% and +39% respectively year-on-year) provides confidence in successfully developing the Yangibana Rare Earths Project.

Hastings has already signed offtake MOU agreements with three Chinese rare earth producers.

The International Energy Agency predicts that by 2030 the stock of electric vehicles (EV) on the road globally will total between 160 to 200 million, an almost 100 times increase of the EV stock today.

These developments will drive the robust support in demand for neodymium and praseodymium well beyond 2030.

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