www.lynascorp.com
Lynas Corporation Limited's (ASX: LYC) vision is to be a global leader in Rare Earths for a sustainable future; a vision realised by the passion and practices of our people.
Lynas is an ASX listed company, with the strategy to create a reliable, fully integrated source of Rare Earths supply from mine through to customers, and to become the benchmark for security of supply and environmental standards in the global Rare Earths industry.
Lynas owns the richest deposit of Rare Earths in the world at Mount Weld, Western Australia. Project development has commenced, with the first mining campaign completed and two processing plants underway. All necessary approvals required for project development have been received, the project is funded and production will commence in 2011.
Lynas Corporation gains FIRB approval for Sojitz investment in Mount Weld rare earths project
Lynas Corporation (ASX: LYC, OTC: LYSDY) has confirmed that the Australian Foreign Investment Review Board (FIRB) has issued a “no objection” letter to a proposed investment in its rare earths project at Mount Weld.
A special purpose company (SPC) established by Sojitz Corporation (2768.T) and the Japan, Oil, Gas and Metals National Corporation (JOGMEC) will invest US$325 million (A$325 million) through a financing package finalised on March 31.
Sojitz is a leading Japanese trading firm and the largest supplier of Rare Earths into Japan. The remaining conditions precedent to the investments by the SPC are expected to be satisfied during April 2011.
As part of the package, J.P. Morgan has underwritten an institutional equity placement and share purchase plan at a price of A$2.07 per share to raise a total of $75 million.
Lynas, which owns the richest known deposit of rare earths in the world at Mount Weld, near Laverton in Western Australia, has executed the deal as demand for the materials steadily rises amid fears China will continue to restrict exports.
The landmark agreements allow Lynas to accelerate marketing to Japanese customers and enable phase two construction to be committed in April 2011 and be completed in 2012.
Proceeds from the loan facility and the Sojitz placement will enable the company to increase planned production of rare earth oxides (REO) to 22,000 tonnes per annum (tpa) from the expected phase one run-rate production of 11,000 tpa.
The institutional placement and share purchase plan (SPP) are not conditional on completion under the funding agreements with Sojitz.
Lynas has also announced that the SPP offers eligible shareholders the opportunity to apply for A$5,000 worth of Lynas’ ordinary shares (subject to any scale-back). The SPP offer opens today and closes on 21 April 2011.
The underwritten SPP will raise gross proceeds of about A$20 million and the shares will rank equally with existing Lynas ordinary shares.
