PERTH (miningweekly.com) – Rare earths miner Lynas on Thursday told shareholders that it had inked a letter of agreement with Japan Rare Earths (JARE) reconfirming that company’s long-term support of Lynas.
The two companies are parties to a long-term loan facility with a balance of $145-million at an interest rate of 2.5% a year and a maturity date of June 2030.
JARE in June of last year agreed to revise the payment schedule, with minimal payments until December 2024 to allow Lynas to use cash flow from its operations on capital expenditure, with JARE deferring further interest payments of $11.5-million until the end of October 2021, with no penalty and no additional interest.
Lynas MD and CEO Amanda Lacaze told shareholders that the letter of agreement inked with JARE reflected the long and mutually beneficial relationship between the two companies.
“Both parties are committed to continued development of global rare earth supply chains. In addition, JARE’s continued support of Lynas ensures we have confidence in executing our growth plans,” she added.
The Atomic Energy Licensing Board recently approved Lynas’ proposed site for its permanent deposit facility, in Malaysia, subject to the completion of relevant studies and final regulatory approvals.
The company was hoping to start the development of the facility by early 2021.