The company has issued 19.4 million shares at $0.11 per share raising $2.136 million before costs.
With the second tranche, Hastings will issue a further 7.8 million shares at $0.11 per share following shareholder approval at the Annual General Meeting to be held in November 2012.
At the same time, Hastings will also issue a free attaching option exercisable at $0.15 per share on or before 31 March 2014 on a one for two basis for all shares issued under tranche one and tranche two.
Hastings' directors will seek shareholder approval at the AGM to participate in the raising on the same terms and conditions for up to 1.5 million shares.
Patersons Securities Limited acted as lead manager to the capital raising.
Hastings will apply the funds to the development of the Hastings heavy rare earths project, with a specific emphasis on process optimisation work at the Australian Nuclear Science and Technology Organisation.
The money will also advance pilot design work, construction and operation; pre-feasibility work; and be used in securing a strategic partner for development of the project.
The Hastings deposit hosts JORC Indicated and Inferred Resources of 36.2 million tonnes at 0.21% TREO, including 0.18% HREO, plus 0.89% ZᵣO₂ and 0.35% Nb₂O₅.
The deposit is the largest heavy rare earth project in Australia, and ranks fourth largest globally, (HREO projects defined as > 35% HREO: TREO).
Importantly, the Hastings project contains predominantly heavy rare earths (85%), such as dysprosium and yttrium that are substantially more valuable than the more common light rare earths.
The project contains enough resources to support a plus-25 year mine life at 1 million tonnes per annum.
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