PNG power developer into rare earths

HAVING received great publicity and validation for its Yangibana rare earths venture from Andrew Forrest last month, Hastings Technology Metals has launched a $A110 million equity raising.
PNG power developer into rare earths PNG power developer into rare earths PNG power developer into rare earths PNG power developer into rare earths PNG power developer into rare earths
Forrest's Fortescue Future Industries is about to develop hydro power installations in Papua New Guinea.
 
A two-tranche institutional placement is set to raise $100 million, 90% of which is underwritten, while a share placement plan is being launched for another $10 million.
 
Pricing for the new equity is $4.40 per share, a 19% discount on the stock's recent trading level at $5.42.
 
Hasting said the funding strengthens its balance sheet and places it in a strong position to finalise project financing for Yangibana as it targets plant commissioning by 2024.
 
Yangibana, located in the Gascoyne region of Western Australia, has a capital cost of around $660 million.
 
Various financing parties are reportedly interested in providing debt.
 
Hasting's prospects of being Australia's next rare earths producer were boosted last month when Forrest's Wyloo Metals provided $150 million in debt/convertible funding for the Australian Securities Exchange-listed company to buy a 22% stake in a Canadian company Neo Performance Materials.
 
Neo is a producer of magnets, specialty chemicals, and rare metals and compounds.
 
At its last traded share price of $5.42, Hastings was capitalised at $550 million.

 

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