TORONTO (miningweekly.com) – A day after announcing a $175-million fundraising, rare earth metals company Neo Material Technologies announced on Thursday it was increasing its convertible debenture offering to $200-million.

RBC Capital Markets and Scotia Capital are the lead underwriters, and have the option to buy an additional $30-million of the debentures, which would take the total financing to $230-million if exercised.

On Thursday, Neo CEO Constantine Karayannopoulos said the cash would provide balance sheet flexibility and could fund acquisitive growth.

“This financing will allow us to further enhance our position through potential strategic acquisition opportunities and increased investments in operations,” he commented.

Asked by an analyst on a conference call earlier on Thursday what acquisitions Neo might be considering, Karayannopoulos was tight-lipped.

“At any given time we have a number of initiatives on our radar screen. We’d like to continue to grow all aspects of our business...and we’re always talking to folks in that space,” he commented.

The debentures are being priced at $1 000 apiece, and will pay 5% interest a year until they mature at the end of 2017.

They can be converted to shares at a price of $13,80 each.

The offering is scheduled to close on or about June 2.

Neo owns plants in China, Thailand, Germany and North America that make permanent magnets and rare metal powders used in high-tech industries.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.