Rare-earth game Hastings tipped for $200m capital raise

Sell-side analysts at Macquarie are tipping a $200 million capital raise in listed rare-earth play Hastings Technology Metals, after Hastings surprised the market with a strong lineup of lenders for its Yangibana project this week.

Neodymium ingots. Bloomberg

Yangibana of Hastings is a rare earth project in the Gascoyne region of Western Australia and contains neodymium and praseodymium, which are used to make permanent magnets. It has mobilized funds to start major construction work from October.

On Monday, Hastings said it received conditional credit approval for up to $130 million in project financing from German bank KFW IPEX-Bank, in addition to the $140 million loan from North Australia Infrastructure. Facility (NAIF) in February. He had also polled for an additional $350 million in northern bonds.

In a note sent to clients on Monday after the ASX announcement, Macquarie analysts said lender interest in Yangibana was strong and would reduce the need for equity to finance the project.

“Interest from the debt markets was stronger than expected, with our base case assuming only A$160m of additional debt to the NAIF facility, with the remaining shortfall covered by a capital raising. A$200 million fund,” the Macquarie said. analysts said.

Barrenjoey and King Wood Mallesons assist Hastings with interests/strategic interests. KPMG Corporate Finance and Herbert Smith Freehills advise on debt financing for projects.

Hastings also said it has entered into preliminary discussions with potential downstream partners in Europe.

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