Lynas Corporation
Lynas Corporation (ASX: LYC) is focused on becoming a producer of rare earths, and holds one of the richest deposit of rare earths in the world at Mount Weld in Western Australia.
Lynas Corporation raises A$20m for development of rare earth projects
Monday, May 02, 2011
Lynas Corporation (ASX: LYC, OTC: LYSDY) has raised A$20 million through issuing 9,756,324 shares at $2.05 per share via an oversubscribed share purchase plan (SPP).
The SPP was underwritten by J.P. Morgan Australia Limited and the new shares will be allotted under the SPP on 3 May 2011.
The funds will be used for additional expenditure including preliminary work on the Kangankunde Deposit in Malawi, the purchase of additional equipment and first fill chemicals for the Lynas Advanced Material Plant in Malaysia and general working capital for the company.
Lynas received applications for about A$58.9 million worth of new fully paid ordinary shares. All eligible shareholders who applied for shares will receive about 828 new shares.
On March 31 Lynas finalised a US$325 million (A$325 million) financing package with Japan's Sojitz Corporation (2768.T) to fast track a phase-two expansion of its rare earths project at Mount Weld.
Lynas owns the richest known deposit of Rare Earths, also known as Lanthanides, in the world at Mount Weld, near Laverton in Western Australia. Lynas will concentrate the ore mined at Mount Weld in a Concentration Plant approximately 1.5km from the mine.
The concentrate produced by the Concentration Plant will be shipped in sea containers and transported by road and ship to the east coast of Malaysia to the Lynas Advanced Materials Plant (LAMP), Malaysia, to process the Mount Weld concentrate through to separated Rare Earths products.
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