Lynas to raise about $40m

MAY 06, 2014

Elizabeth Redman

Business Spectator Reporter

Rare earths miner Lynas Corporation will undertake a fully underwritten share purchase plan to raise at least $30 million and a placement to raise up to $10m to augment its working capital as it ramps up its Malaysian operations.

The issue price for both the share purchase plan and the placement will be a 17.5 per cent discount to the average price during the five trading days up to and including the share purchase plan shortfall date, rounded up the nearest 0.1 per cent, Lynas said.

Lynas chairman Nicholas Curtis said the raising provides a solid financial base for the company and addresses any liquidity concerns the market might have had.

“The ramp up of production and sales from the Lynas Advanced Materials Plant is now well advanced and we expect to be at our targeted production rate during the June 2014 quarter,” Mr Curtis said.

“The equity raising will secure our short-term working capital requirement.”

The share purchase plan is fully underwritten by Patersons Securities to $30m.

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