Lynas Rushes to Gather $200M to Jumpstart Malaysian Plant
By Esther Tanquintic-Misa | November 9, 2012 3:06 PM EST
A day after it was finally cleared to move forward its Malaysian rare earths processing plant, Australian miner Lynas Corp. is now rushing to gather at least $200 million to jumpstart the facility.
The funds, according to Lynas' statement to the Australian Securities Exchange, will be obtained through a fully underwritten institutional placement and share purchase plan of A$150 million and A$50 million, respectively.
"The funds raised would be used for working capital and general corporate purposes during commissioning and ramp-up at the plant," the rare earths mining firm said.
"We believe Lynas will need additional funds to get it through to first cash flows given a likely three-month minimum commissioning period," Deutsche Bank analysts said on Friday.
The equity raising will initially cover a $60 million placement to institutional investors and a second $90 million tranche but subject to shareholder approval.
The rare earths miner will encourage retail investors to take part through a $50 million share purchase plan, with each shareholder offered a maximum of $15,000 worth of new shares.
The shares will be priced at 75 cents, down 6.8 per cent compared to the company's last traded price of 80.5 cents.
"It can borrow up to $US80 million in further debt, however any other funding will need to come from forward sales or equity in our view," according to Deutsche Bank analysts.
"The exact size of the shortage of funds is difficult to forecast given uncertainty on further delays. We forecast Lynas requires $120 million."
To contact the editor, e-mail:
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
Join the Conversation
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- Ukraine Crisis: Putin Dangles Nuclear War Threat, US Senators Advise Sending Defensive Weapons
- Australia Races Against Potential Genocide In Iraq
- James Foley Is A Spy – Jihadi Recruiter Reveals
- Australia's Renewable Energy Industry Braces for Removal of Support
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Google Chrome 64-bit for Windows 8 and Window 7 with Mac Beta Available
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen
- Google Can Kill Samsung with Android KitKat and Android One: Here's How