He will remain technical director.
The placement will raise $601,200 before costs and in tandem with board changes are designed to optimise the skill base and in addition reduce costs.
The funds will enable work to continue on the Hastings Rare Earths Project, provide working capital over the next 12 months and as well as seek new opportunities in the minerals and metals sector.
Hovanessian has over 20 years experience in mining and exploration management and has previously acted as managing director and chairman of several ASX listed junior mining and oil and gas companies.
Strategic rare earths partner
Perhaps missed by some investors, in September, Hastings signed a strategic alliance with an investor that specialises in rare earths with an aim of moving toward commercial production from the self-named Hastings Project in Western Australia.
The un-named partner has an existing investment in an integrated Rare Earth business with expertise in mining and processing of Heavy Rare Earths.
It also has significant experience in operating mines and investing in the mining industry.
Of the alliance chairman Tony Ho said in September:
"As part of the alliance, we have commenced work to reduce the capital costs to derisk, and to maximise the NPV of the Hastings project."
The Strategic Alliance Memorandum of Understanding will investigate funding requirements for future testwork, pilot studies, Bankable Feasibility Study and to establish commercial production.
It will identify the optimal processing of ores including toll treatment opportunities.
Funding will include potential offtake arrangements, refining and marketing agreements.
The alliance allows for an initial period of further mutual due diligence to formalise a detailed plan to move the Hastings Project into production.
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