- Lynas Corporation (LYC) has successfully completed its placement and the institutional component of its entitlement offer
- These two completions means the rare earth miner has raised $311 million, forming part of a larger $425 million equity raise
- To raise the remaining $114 million, Lynas will undertake a retail entitlement offer, which is expected to open on August 24 and close on September 7
- The company will use the money from the placement and the entitlement offers to fund its planned Kalgoorlie Rare Earth Processing Facility and complete upgrades at the Lynas Malaysia Plant
- Lynas is currently down a slight 0.93 per cent and shares are trading for $2.55 each just before midday trade
Lynas Corporation (LYC) has successfully completed its placement and the institutional component of its entitlement offer.
These two completions means the rare earth miner has raised $311 million, forming part of a larger $425 million equity raise.
To raise the $311 million, 92 million shares were issued under the placement to raise $212 million, while 44 million shares were issued as part of the institutional entitlement offer to raise approximately $100 million.
Further, as part of the entitlement offer, shareholders were offered one new share for every 7.7 held.
Shares were priced a $2.30 each, representing an 11.9 per cent discount to Lynas’ last closing price.
All new shares issued are expected to settle on August 25 and be allocated and begin trading on the ASX on August 26.
To raise the remaining $114 million, Lynas will undertake a retail entitlement offer which is expected to open on August 24 and close on September 7, unless it gets extended.
As seen in the institutional entitlement offer, eligible shareholders will also receive one new Lynas share for every 7.7 already held.
Lynas will use the money from the placement and the entitlement offers to fund its planned Kalgoorlie Rare Earth Processing Facility and complete upgrades at the Lynas Malaysia Plant.
“We are delighted by the level of demand for the institutional offer from eligible existing and new institutional investors both in Australia and overseas,” CEO and Managing Director Amanda Lacaze said.
“This is a clear indication of institutional support for our Lynas 2025 growth vision and our strengthened balance sheet will enable Lynas to mitigate global economic uncertainties and continue to progress with our Lynas 2025 foundation projects,” she added.
Lynas is currently down a slight 0.93 per cent and shares are trading for $2.55 each at 11:50 am AEST.