Lynas raises $40m for plant
UPDATE 2.30pm: Lynas Corporation says its share purchase plan and top-up placement has closed oversubscribed, raising nearly $40 million for the company as continues the ramp-up of its Malaysian rare earths processing plant.
The company raised $30.08 million from existing shareholders through the share purchase plan, which was priced at 11.3 cents, and a further $12 million from institutional and sophisticated investors though the placement.
Lynas chairman Nicholas Curtis said the company was delighted to have received such a strong response from shareholders.
He said the raising would augment the company's working capital as it continued to seek positive operational cashflow from its plant in Malaysia.
"Following the successful capital raising, we are working constructively with financiers to restructure our debt repayment obligations to further solidify the company's financial profile through the build-up and retention of operating cash," he said.
Lynas shares fell three cents, or 17.65 per cent, to 14 cents at the close after emerging from a trading halt this morning.
