Lynas Rare Earths to acquire Meteoric Resources in nearly A$1 billion all-scrip deal

Deep News
Oct 01

Australia's Lynas Rare Earths announced on Thursday that it will acquire Perth-based miner Meteoric Resources in an all-stock transaction that values the latter at A$968 million (approximately US$672 million).

Under the acquisition plan, Lynas will acquire all shares of Meteoric at a fixed exchange ratio of 0.0207 new Lynas shares for every Meteoric share; based on Meteoric's closing price on the previous trading day, the deal carries a premium of more than 68%.

The transaction will give Lynas access to Meteoric's flagship Caldeira rare earth project in Brazil.

Lynas said it plans to work with Meteoric's existing team to advance the development of Caldeira, and expects capital expenditure for the project's development to exceed US$500 million.

The company also committed to providing Meteoric with an interim financing facility of up to A$110 million to fund the ongoing development of the Caldeira project.

In the absence of a superior proposal and subject to an independent expert determining that the transaction is in the best interests of shareholders, the Meteoric board has unanimously recommended approval of the scheme.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10