PERTH (miningweekly.com) – Rare earths developer Hastings Technology Metals on Monday said that it had received firm commitments to raise more than A$100-million through a two-tranche placement to accelerate the construction if its Yangibana project.

The company last week announced a fully underwritten placement to institutional, professional and sophisticated investors, to raise A$57.2-million.

The first tranche placement will consist of 301.1-million shares at a price of 19c each, and will be placed under the company’s existing capacity.

At the time of announcing the fully underwritten share placement, Hastings reserved the right to undertake a second tranche placement to accommodate additional interest.

The company on Monday said that following strong investor demand, Hastings has decided to expand the size of the second tranche placement from the previous cap of A$15-million, and has received firm commitments for A$43.5-million worth of shares, also priced at 19c each.

“Hastings has been overwhelmed with the strong support from Australian and international investors for our Yangibana rare earths project. Their support in the placement underscores the market’s belief that Yangibana will become Australia’s next rare earths producer,” said Hastings executive chairperson Charles Lew.

The second tranche placement is subject to shareholder approval.

On the settlement of both tranches of the share placement, Hastings will have a cash balance of A$120-million before costs.

The ASX-listed company previously said that funds raised would be used to advance the Yangibana rare earths project, including the procurement of long-lead items, front-end engineering plant design, mine site works and for working capital.

The one-million-tonne-a-year Yangibana operation is expected to produce some 15 000 t/y of mixed rare earths carbonate, and about 8 850 t/y of total rare-earth oxides, with Hastings previously estimating a capital spend of A$517-million to bring the project online.