7 August 2007
$60M SHARE PLACEMENT COMPLETES FUNDING PACKAGE
FOR RARE EARTHS PROJECT
The Directors of Lynas Corporation Limited (“Lynas”) (ASX code LYC) are pleased to announce
the completion of a $60 million share placement at $1.15 per share. This completes a
$300 million debt and equity funding package for the Rare Earths project raised over the last
month.
The placement was lead managed by Austock Corporate Finance with Patersons Securities
Limited appointed as co-broker to the issue. Strong demand from both domestic and international
investors resulted in the placement being significantly oversubscribed. Settlement and allotment
of all shares under the placement will occur on 10 August 2007.
Upon completion of the placement, Lynas will have approximately 560 million ordinary shares on
issue. Participants in the placement represent a broad range of global institutional investors
consisting of existing institutional holders and a number of new institutional shareholders that have
been attracted onto the register.
The Directors are also able to announce the final amount to be drawn down from the Indus Capital
Partners, LLC, convertible note facility announced on 6 July 2007, shall be $80 million, leaving a
$35 million standby facility available as additional contingency for the project.
The funding package for the Rare Earths project therefore comprises of the share placement, the
convertible note facility, the US$105 million bank debt facility underwritten by Bayerische
Hypo- und Vereinsbank AG announced by the company on the 27 July 2007 and a cash balance
of $60 million.
Lynas Executive Chairman, Nicholas Curtis said:
“The Directors are very pleased to finalise the complete fund requirements of the Rare Earths
project taking into account prudent gearing ratios for the company whilst minimising dilution for
existing shareholders. This package shall fund the capital and all project costs for the
development of the mine at Mt Weld, the processing plant in Malaysia, contingencies, working
capital requirements and corporate costs.”
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