Cadence Minerals plc (LON:KDNC) has noted that Hastings Technology Metals, Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia, has received firm commitments to raise $14.6 million (before costs) at $0.125 per share. An additional $3.1 million will also be raised via a Conditional Placement and a further $3.0 million will be raised from a fully underwritten Share Purchase Plan.
Strong interest has been received from existing shareholders and new institutional and sophisticated investors, resulting in a significantly over subscribed Placement. Hastings Executive Chairman, Mr Charles Lew, will participate in the raise for an amount of $0.5 million, subject to shareholder approval at the Annual General Meeting in November 2020. Total funds raised under the Placement, SPP and Conditional Placement are expected to total approximately $20.7 million.
Funds raised will be used to:
· Procure equipment arising from the decoupling of the beneficiation plant and the hydrometallurgy plant;
· Further engineering design;
· Grade and resource drilling to increase mining reserves;
· Mine site works;
· Working capital.
The full HAS release can be found at: https://www.asx.com.au/asxpdf/20200826/pdf/44lxkj9nw2b91q.pdf
Hastings Executive Chairman, Charles Lew said: “It is gratifying to see the strong interest from new investors in the Hastings story and testament to the hard work done by the Company’s management team in recent months to advance our world-class Yangibana rare earths project from a technical, financial, regulatory and customer point of view. I welcome the new investors onto the Hastings register and look forward to offering the same terms to our existing loyal shareholder base through the SPP and Conditional Placement. The funds from the capital raising will enable us to continue to drive the Yangibana rare earths project forward alongside our target to begin construction next year.”
Cadence CEO Kiran Morzaria commented: “We are pleased to note that strong interest in Hastings Technology Metals and the Yangibana project has resulted in an oversubscribed placing. These funds, along with the prospect of commencement of mine construction next year provide a positive read-over into the value and future potential of our joint venture with Hastings. We look forward to further developments.”
Cadence Minerals Yangibana Holding:
Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Rare Earth Deposit. Hastings Technology Metals owns the remaining 70% (“Hastings”). Further details of our ownership the mineral resources and reserves on our jointly held leases can be found at: https://www.cadenceminerals.com/projects/yangibana-rare-earth-project-2/
The current mine plan anticipates production to start from our joint venture areas (Yangibana and Yangibana North) in year 6 and continue to the end of mine life (year 13). Further details can be found in the Hastings 2019 Annual Report