Lynas Raises Capital
By Clint Cox
As announced by The Wall Street Journal in an article entitled, “Lynas Turns to Market for Funds After China Deal Sours”, Lynas has found alternative funding for their Mt. Weld project:
The miner’s fully underwritten raising is pitched at 45 Australian cents a share and comprises a A$88 million placement to institutional investors, a A$295 million one-for-one entitlement offer to existing shareholders and a A$67 million underwritten conditional placement.
The offer price is a steep discount to Lynas’ last traded share price of 90 Australian cents.
This certainly doesn’t help their share structure, but it does help satisfy their immediate needs. We will look next for their timeline on restarting construction in Malaysia and the building of the concentrator in Australia.