Rare earths explorer Lynas Corporation yesterday announced the completion of a $170 million capital raising that will be used to fund its Mt Weld project in Western Australia.
The raising is the retail component of a larger plan to raise $450 million which came about after the collapse of a proposed $505 million investment deal with China Nonferrous Metal Mining (CNMC) in September.
“It (capital raising) is in replacement of CNMC transaction, which is not proceeding,” Lynas company secretary Andrew Arnold told MINING DAILY.
The CNMC deal was terminated by the Chinese company after the Foreign Investment Review Board wanted its proposed 51.6% stake in Lynas reduced to less than 50%.
The latest raising follows Lynas’ recent completion of an institutional entitlement offer and unconditional placement that raised about $213 million.
The company said more capital raising is soon to come.
“Assuming that the conditional placement is approved by shareholders at the EGM (extraordinary general meeting) to be held on 9 November 2009, the company expects to raise additional proceeds of $67 million,” Lynas said.