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HAS raising: 28% premium to last quoted price - 42% premium last 30 days
HASTINGS RECEIVES FIRM COMMITMENTS FOR A PRIMARY PLACEMENT OF 96M
SHARES AT 10c PER SHARE, A 28% PREMIUM TO THE LAST CLOSING PRICE
Hastings Technology Metals Ltd (Hastings or Company) (ASX:HAS) is pleased to
advise that it has received firm commitments to raise $9.6 million in a Primary Share
Placement with a number of cornerstone investors.
The Company will issue 96,000,000 shares at 10 cents per share raising $9.6 million
before costs. This is the maximum number of shares that the Company can currently
issue under ASX Listing Rules 7.1 and 7.1A and the Company is planning a Secondary
raising as outlined below.
The price represents a 28% premium to the last quoted price and a 42% premium to
the 30 day VWAP. The price reflects confidence of investors following the results of
the Pre Feasibility Study that was released on Friday 8th April 2016.
The Company proposes to raise additional funds in a Secondary placement at a
price of no less than 10c which will be subject to shareholder approval at a meeting
to be held on or around 19 May 2016. A notice for an Extraordinary General Meeting
will be issued in due course.
The funds raised are to be used by the Company to bring its Yangibana Project into
production using the toll treatment model outlined in the ASX release of 8 April 2016.
Charles Lew, Executive Chairman, said "the success of this fund raising in a
challenging capital markets environment is a measure of the confidence investors
have in the Yangibana rare earths project despite the downturn in the resource
sector. The Company remains focussed on developing the mine and bringing it to
production by 2Q 2018."