PERTH (miningweekly.com) – Rare earths miner Lynas has extended its existing Japan Australia Rare Earths (JARE) loan facility by a decade.
The maturity of the JARE facility has now been extended until the end of June 2030, with interest rates reduced from 3.75% a year to 2.5% a year, with a total of $146.9-million to be repaid at the end of that period.
An early repayment of A$30-million is due if the operating licence in Malaysia is not renewed by the end of December this year.
Voluntary repayments can be made at any time, without penalty. Furthermore, the cash sweep mechanism has been removed, along with restrictions on dividends once the principal amount outstanding has been reduced to $60-million or less.
As part of the loan facility extension, Lynas has reaffirmed its commitment to priority supply Japanese industry.
“The relationship between Lynas and the Japanese rare earths industry is significant for the global rare earths industry, and the JARE loan facility is a key component to that relationship,” Lynas chairperson Mike Harding said.
JARE is a special purpose company established by Japan Oil, Gas and Metals National Corporation and the Sojitz Corporation.