Lynas strikes A$9m investment deal with JARE
PERTH (miningweekly.com) – Rare earths miner Lynas has reaffirmed its commitment with Japan Australia Rare Earths (JARE) to jointly develop rare earths opportunities, striking a $9-million deal with the investor.
JARE is a special purpose company established by Japan Oil, Gas and Metals National Corporation (Jogmec) and Sojitz Corporation.
Lynas and JARE are parties to a $141-million long-term senior loan facility, with a maturity date of the end of June 2030.
Under a commitment agreement inked with Lynas, JARE will provide a contribution of $9-million to the exploration programme at Mt Weld on the exploration target in the fresh carbonatite below the current Mt Weld life-of-mine design and ore reserve.
JARE’s contribution will be made through a $9-million subscription for ordinary shares in Lynas at a subscription price which will be the higher of the five-day volume-weighted average price in the period immediately following the agreement, or the last traded price immediately prior to the agreement being struck.
JARE will also provide technical support to the exploration programme through the involvement of world -leading geologists and other technical professionals from Jogmec, and has agreed to remove capital management restrictions in the loan facility.
“The relationship between Lynas and the Japanese rare earths industry is significant for the global rare earths industry. We are pleased to have JARE’s continued support, including for our exciting exploration programme at Mt Weld,” Lynas CEO and MD Amanda Lacaze said.
“The removal of the capital management restrictions in the loan facility is an important step in the maturing relationship between Lynas and JARE and will ensure all options can be considered as part of our capital management strategy.”
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