Global rare-earths developer Lynas Corporation (ASX: LYC) has established a sponsored American Depositary Receipt (ADR) Program for overseas investors, including North American funds to create a wider market in the company's shares.
Lynas owns the richest known deposit of rare earths, also known as Lanthanides, in the world at Mount Weld, near Laverton in Western Australia.
The primary benefit of establishing the ADR program is to create a broader secondary market for Lynas, particularly in North America, thereby providing better access for American investors to deal in Lynas securities.
Development of the Mount Weld mine is complete and in November 2009 Lynas completed an A$450million capital raising to enable the completion of construction of the Concentration Plant at Mount Weld and an Advanced Materials Plant to process the Mount Weld concentrate through to final Rare Earths oxides in the Gebeng Industrial Estate, Kuantan, Pahang, Malaysia.
The ADRs will be tradable via licensed U.S. brokers in the ordinary course of trading in the Over-The-Counter (OTC) Market in the U.S.
Lynas has appointed the Bank of New York Mellon as its authorised U.S. representative and Depositary Bank to establish the ADR facility. This will now consolidate all Lynas ADR trading in the U.S. under the BNYM facility.
Particulars for the U.S. sponsored ADR program are as follows:
U.S. Exchange: OTC
CUSIP Number: 551073208
ISIN Number: US5510732085
ADR Ticker Symbol: LYSDY
ADR to Ordinary Share Ratio: 1:10