Lynas announces plans to raise $40 million

Rare earths miner Lynas is seeking to raise up to $40 million from shareholders as it looks to address its working capital levels.

In an ASX announcement today, the company said it would launch a fully underwritten share purchase plan to raise a minimum of $30 million.

Lynas said it had the capacity to “top up” this amount by a further $10 million.

The issue price for the share purchase plan and the placement will be a 17.5 per cent discount to the average price.

The company is also seeking to alter the terms of its Sojitz/JOGMEC debt facility.

“We believe the capital raising and proposed debt amendment provides a solid financial base for the company and addresses any liquidity concerns that the market might have had,” Lynas chairman Nicholas Curtis said.

Curtis said the equity raising would secure the company’s short term working capital requirement.

Lynas owns and operates the Mt Weld rare earth mine and associated concentrate plant and the materials plant in Gebeng Malaysia.

Achieving a new record month of production in April of 709 tonnes the company said it is on target to meet target of 22,000 tonnes per annum.

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