ASX-listed Hastings Technology Metals on Wednesday announced a partially underwritten pro rata renounceable rights issue to raise A$22.15-million.

The rights issue at A$0.36 a share is a 42% discount to the five-day volume weighted average price and a 40% discount to Hastings’ last traded share price.

Proceeds from the rights issue, together with existing cash, will be used towards activities and workstreams supporting the development of the Yangibana rare earths project.

Under the rights issue, eligible existing shareholders can subscribe for nine new fully paid ordinary shares for every 20 existing shares held.

Hastings will also issue one free attaching listed option for every three shares applied for and issued to eligible shareholders with an exercise price of A$0.50 and an expiry date of two years from the date of issue.

The rights issue will result in the issue of about 61.5-million new shares and 20.5-million new options.

Executive chairperson Charles Lew said the rights issue would act as a bridge to the planned completion of the project financing for Yangibana.

“All of the board and senior management team intend to take up their entitlement in the rights issue, underlining our conviction in the Yangibana project’s potential to become a world-class rare earth operation and our long-term vision to become a fully integrated mine-to-magnet producer,” he commented.

Located in the Gascoyne region of Western Australia, the Yangibana project contains one of the most highly valued deposits of neodymium and praseodymium (NdPr) in the world with an NdPr to total rare earth oxide ratio of up to 52% in some areas of the orebody.

The project is fully permitted for immediate development and is well-timed to meet the forecast supply gap for rare earth elements accelerated by the growth in electric vehicles and wind turbines, both vital for the global energy transition.

It will be developed in two stages with an initial focus on the construction of the mine and beneficiation plant to produce 37 000 t/y of mixed rare earth concentrate.