Asian investors have identified the potential of Hastings Rare Metals with investors from the region showing particularly strong interest in the placement.
The company has issued 7.85 million shares at $0.11 per share to raise the funds.
Hastings has also issued a free attaching option exercisable at $0.15 per share and expiring on 31 March 2014 on a one for two basis for all shares issued under tranche one and tranche two, amounting to 13.6 million options.
The company's directors participated in the raising on the same terms and conditions for 963,636 shares.
Patersons Securities 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.
Hastings recently acquired 50 square kilometres of tenements which are contiguous with the Hastings heavy rare earths project, which provides rare earths exploration potential and importantly flexibility for infrastructure.
The terms of the acquisition include an up-front payment of $50,000, a minimum expenditure commitment of $150,000 over 5 years on the tenements and a royalty of 1% on any rare earths extracted.
Hastings has the rights to all minerals, other than precious and base metals, which are retained by the vendor. There are gold workings on the tenements dating back to the gold rush in the late 1800s.
Only a limited amount of exploration has been undertaken, apart from historic workings, with the most recent work occurred in the late 1990s and included rock chip and soil sampling.
The work noted higher than average rare earth values, and also returned values for gold, silver, lead and tungsten.
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