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 receives $450m to advance Rare Earths project
Lynas Corporation (ASX: LYC) has now received the full amount of A$450 million less expenses pursuant to the equity raising announced on 29 September 2009.
The capital raising was undertaken in three phases at an issue price of $0.45.
The Lynas share price closed up 5.5 cents, or 11.6% higher, at $0.53.
Funds raised from the issue will be used for the completion of Phase 1 of the Lynas Rare Earths Project.
Enabling the company to lift the suspension of the Project, and to complete construction and commissioning of both the Concentration Plant in Western Australia and the Advanced Materials Plant in Malaysia.
Mt Weld is one of, if not the richest deposits of Rare Earths in the world.
Phase 1 target production of 10,500t Rare Earths Oxides will help to fill the supply - demand imbalance expected in the future.
Recently, executive chairman Nicholas Curtis said, "Lynas is committed to growth and the current expectation is that Lynas will move forward with the development of Phase 2 of the Rare Earths Project to 21,000t Rare Earths Oxides per annum as soon as possible after completion of Phase 1.”
“The proposed equity raise will ensure Lynas maintains a conservative capital structure and balance sheet flexibility as it seeks to fund future expansion, he said at the time.
